Ben is to invest $13 000 for 3 years at 8% p.a with interest paid annually. Find the amount of interest earned by calculating the simple interest for each year separately.

Question

I know how to solve this using the normal method, but i don't know how to do it by calculating the interest for each year separately . Thanks.

Answer 1

the interest is the same for each year:

13000 * 0.08

clearly you need to review why the "normal" method works as it does.