# Question #8994e

##### 3 Answers

#### Explanation:

This can be solved using the formula:

where:

Plug in data provided to find the Interest

Thus, the interest

If the interest rate is increased by 3.75% after the first year; the Interest

Thus, the total Interest earned before and after the increase can be computed as shown;

Therefore, an increase of the Interest earned is

(a) Interest earned after 3 years @ 3.5% Interest =

(b) Increase in Interest due to rise in interest to 3.75% after one year =

#### Explanation:

Where I = Simple Interest earned, P = Principal, N = No. of years & R = Rate of Interest in percentage.

(a) Given

(b) New Rate of Interest

Interest earned

Old rate of interest

Total Interest = 48.75 + 22.75 = K 71.5#

Increase in interest with the revised interest rate after 1 year

#### Explanation:

The symbol % cab be thought of as representing a fraction but one that is worth

A direct comparison is the the metric measure of centimetres. The part word centi signifies

It is usual to translate the word of (as in

The wording 'per anum'

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Interest starts at

1 year at

2 years at

So the increase in interest is: