ONE
    Númas
    ← Back to the programme
    NationalEasyNumbers & Operations5–6

    Simple Interest on a Savings Account

    Juro Simples numa Conta Poupança

    Rita deposits €500 in an account that pays simple interest at 4\% per year. The interest is not added to the capital: every year it is calculated on the original €500. How much interest does she earn in 3 years, and how much money does she have in total at the end?

    With simple interest the yearly amount never changes, so find one year's interest and think about what the three years do to it.

    Solution

    Step 1 of 4

    1. 1.Interest for one year: 4\% of 500 = \frac{4}{100} \times 500 = 20 euros.