A savings account gains 2.5% simple interest per year. How much interest will a saver earn if they put £200 into their account for three years?
To calculate the interest earned, we can use the formula:
Interest = (Principal) x (Rate) x (Time)
Given that the principal is £200, the rate is 2.5% (or 0.025 as a decimal), and the time is 3 years, we can substitute these values into the formula:
Interest = (£200) x (0.025) x (3)
Interest = £15
Therefore, a saver will earn £15 in interest if they put £200 into their savings account for three years.