Asha deposited sh. 280,000 into the bank.After 4 years her savings reached sh. 386,400.Find the amount of interest per year paid by the bank.

#Please i need your help guys #

Principal Amount = P = 280,000

Final Amount = F = 386,400
Years = T = 4
Simple Interest = SI = F - P = 106,400
Rate = R

SI = P x R x T
R = SI/(P x T) = 106,400/(1,120,000)
= 0.095
= 9.5%

Use that to find the amount per year

Why we should find for percent the interest while we have asked to find the amount of interest please can you explain to me which word imply the required is percentage interest

Good question. The problem implies the same amount paid every year, so it'll be simple interest.

The total interest paid was 106400 over 4 years. Just divide that by 4 to get the annual interest paid.

To find the amount of interest per year paid by the bank, we need to use the formula for simple interest:

Simple Interest = Principal * Rate * Time

Where:
Principal = sh. 280,000 (the initial amount deposited by Asha)
Rate = Amount of interest earned per year
Time = 4 years (the duration for which Asha saved her money)

Let's plug in the given values:

Simple Interest = 280,000 * Rate * 4

We also know that the savings after 4 years is sh. 386,400, which includes the principal amount and the interest earned. So, we can write another equation:

Total Savings = Principal + Simple Interest
386,400 = 280,000 + (280,000 * Rate * 4)

Now, we can solve for the value of Rate. Rearranging the equation, we have:

280,000 * Rate * 4 = 386,400 - 280,000

280,000 * Rate * 4 = 106,400

Divide both sides by 280,000 and 4:

Rate = (106,400) / (280,000 * 4)

Rate ≈ 0.095 (rounded to three decimal places)

Therefore, the bank paid an interest of approximately sh. 9.5% per year on Asha's savings.