Stephan places £950 in his bank account which pays 1.6% simple interest per year.
A)How much interest will he earn each year?
B) How much will he have in his account after 1 year?

A. He will earn £15.2 each year

B. After one year he will have £965.2 in his account

Step-by-step explanation:

Applying the simple interest formula

A = P (1 + rt)

A=final amount

P=initial principal balance

r=annual interest rate

t=time (in years

Given data

Principal p= £950

Rate r= 1.6% =1.6/100= 0.016

Time t= 1 year

Substituting in our simple interest formula we have

A= 950(1+0.016*1)

A= 950(1+0.016)

A= 950(1.016)

A= £965.2

Interest = final amount - principal

= 965.2-950

= £15.2

$649.60

step-by-step explanation: