Get an answer in 5 minutes

We'll notify as soon as your question has been answered.

Plus iconAsk a question to our educators
MATHS
Asked by Lauren

Here are two schemes for investing £2000 for 3 years. Scheme a: £5.35 interest each month. Scheme b: 3% simple interest each year. Which scheme gives the most total interest over the 3 year period?

Hi Lauren, So a) first: In 3 years there are a total of 12x3=36 months And 36x5.35=£192.60 Then b): The formula for simple interest is P(1+rt/100) where P is the principle (which we can think of as how much we started with), r is the interest rate (think r for rate!) and t is the length of time (in years) So that’s 2000(1+3x3/100)=2000(1.09) =2180 Meaning we gained £180 from scheme b) Hence scheme a) gives more interest. Hope that helps!

Similar Maths questions

What is Q&A on Scoodle?

At Scoodle we understand that everyone learns in a different way. Some people learn through practice, using essays and notes; others prefer video lessons to watch and learn, some just need help with a specifically hard question, while some learn best 1-on-1 tutoring sessions. At Scoodle we cater for all types of learning styles and needs. From GCSE Maths video lessons to A-level English essays and specialist educators in every subject - we’ve got you covered.

Faces of students on ScoodleFaces of students on ScoodleFaces of students on Scoodle
Scoodle has helped over 131,000 students so far

5 Maths tutors available now

Need help with Maths?

Getting expert help from a tutor is a great way to improve your Maths grades.

Badge showing the text 'New'Discover learning resources by tutors

Learn Maths with Video Lessons
GCSE Maths - Numbers
1hr 28m · 8 videos
Paja's profile picture
Paja Kruzikova
·

711 students helped

GCSE Maths - Numbers
Quadratic Inequalities
28m · 3 videos
Iqbal's profile picture
Iqbal Lokman
·

1.6k students helped

Quadratic Inequalities
GCSE Maths - Ratios
1hr 32m · 9 videos
Paja's profile picture
Paja Kruzikova
·

711 students helped

GCSE Maths - Ratios
GCSE Maths - Algebra A
56m · 6 videos
Paja's profile picture
Paja Kruzikova
·

711 students helped

GCSE Maths - Algebra A
GCSE Maths - Algebra B
1hr 14m · 7 videos
Paja's profile picture
Paja Kruzikova
·

711 students helped

GCSE Maths - Algebra B
GCSE Maths - Algebra C
1hr 27m · 9 videos
Paja's profile picture
Paja Kruzikova
·

711 students helped

GCSE Maths - Algebra C