If N25,000.00 is kept in a bank at the rate of 2% simple interest, how much will it amount to at the end of 5 years?

Sir pat

10 years ago

By using the compound interest formulae...we have

A=p(1+r/100)^n

where A=? N=number of years

P=25000.00

r=2%

. ' . A=25000(1+2/100)^5

A=25000(1+0.02)^5

A=25000(1.02)^5

A=25000*1.1041

A=27,600

.'. The amount after 5years is 27,600

Revel

1 year ago

The correct answer is supposed to be A, N2,500.00 because the question stated that we should find the simple interest not the compound interest.
P=N25,000.00, R=2%=0.02, T=5years
Simple interest (I)=P×R×T
I=25,000×0.02×5
I=N2,500.00