Question

A bank account offers 5% simple interest per year. Alice puts £7000 into the account. How much simple interest was paid on £7000 in one year?

Answer 1

You earn £350 of simple interest each year.

Explanation:

To solve this you just have to find 5% of 7000. To do this you convert 5% to decimal form (0.05) and multiply that by 7000. This gives you 350. So you earn £350 simple interest each year.