$$ \begin{array}{l}£ 1800 ext { is put into an account. It gathers simple interest at } \ \qquad ext { a rate of } 3 \% ext { per year. } \ ext { a) How much money is added to the account each year? } \ ext { b) How much money will be in the account after two years? } \ ext { Give your answers in pounds }(£) ext {. }\end{array} . . \$ $$.

Question

$$ \begin{array}{l}£ 1800 	ext { is put into an account. It gathers simple interest at } \ \qquad 	ext { a rate of } 3 \% 	ext { per year. } \ 	ext { a) How much money is added to the account each year? } \ 	ext { b) How much money will be in the account after two years? } \ 	ext { Give your answers in pounds }(£) 	ext {. }\end{array} . . \$ $$.

UpStudy AI · Accepted Answer

Let's solve the problem step by step.

**Given:**
- **Principal (P):** £1800
- **Interest Rate (r):** 3% per year
- **Time (t):** Varies based on the part of the question

### a) Money Added to the Account Each Year

Since the interest is **simple interest**, the interest added each year is calculated using the formula:

$$
\text{Interest} = P \times r \times t
$$

For **one year** ($$ t = 1 $$):

$$
\text{Interest} = £1800 \times 0.03 \times 1 = £54
$$

**Answer:** £54 is added to the account each year.

### b) Total Money in the Account After Two Years

Using the simple interest formula for **two years** ($$ t = 2 $$):

$$
\text{Total Interest} = £1800 \times 0.03 \times 2 = £108
$$

To find the **total amount** in the account after two years, add the total interest to the principal:

$$
\text{Total Amount} = P + \text{Total Interest} = £1800 + £108 = £1908
$$

**Answer:** After two years, the account will have £1,\!908.
a) £54 is added each year. b) After two years, the account will have £1,908.

.

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