#Plz i need your help guys (the answer for this question)#

Question

If you deposit sh. 100,000 in a bank which gives 12% interest rate per year. How much will you earn after 1 year and 6 months?

Steve yesterday at 5:42am
That would be 100000 * .12 * 1.5

kelvin yesterday at 12:13pm
Why is it calculated for interest and there is no place indicating it is an interest?

Steve yesterday at 3:29pm
How much will you earn?

you earn interest...

kelvin today at 1:21am
How about this question?

*A richman wants to earn one million shillings in 10 years. What amount should he invest in the bank if the interest rate is 2.5% per year?

Answer 1

It looks like all of your questions are dealing with Simple Interest and that fromula is
Interest = (principal) x (rate) x (time)
Now the richman wants one million shillings in 10 years so Interest is 1,000,000 while time is 10 and the rate is 2.5% so you are looking for the principal amount he has to put into the account.
1,000,000= Px(0.025) x (10)
1,000,000 =0.25P so divide by the 0.25 and you will have the principal the richman needs to invest :)