A bank is offering 3.5% simple interest on a savings accoun. If you deposit ₱10555, how much interest will you earn in two years?

To calculate the interest earned using simple interest, we use the formula:

\[
I = P \times r \times t
\]

Where:
- \(I\) is the interest earned,
- \(P\) is the principal amount (₱10,555),
- \(r\) is the annual interest rate (3.5% or 0.035),
- \(t\) is the time in years (2 years).

Now, substituting the values into the formula:

\[
I = 10555 \times 0.035 \times 2
\]

Let's calculate that:

\[
I = 10555 \times 0.07 = ₱738.85
\]

So, the interest earned in two years is **₱738.85**.

Would you like more details or have any further questions?

Here are some related questions:
1. How would the interest change if the deposit was ₱15,000?
2. What is the total amount in the account after 2 years including interest?
3. How much interest would you earn in 5 years with the same deposit and interest rate?
4. What is the difference between simple and compound interest for the same deposit?
5. If the interest rate increased to 4%, how much would you earn in 2 years?

**Tip:** Simple interest grows linearly with time, making it easier to calculate but potentially less profitable compared to compound interest over long periods.

A bank is offering 3.5% simple interest on a savings account. If you deposit ₱10555, how much interest will you earn in two years?

Learn how to calculate simple interest on a ₱10555 deposit at a 3.5% annual interest rate for 2 years. This example uses the simple interest formula to determine that the interest earned is ₱738.85, with step-by-step calculations.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation