Question

Alya had her money in an account for 25 years at 4 percent interest. Bassam had his money in an account for 20 years at 5 percent interest. Seham had her money in an account for 5 years at 20 percent interest. If each of them originally deposited 500 AED in their accounts, calculate the amount of money each one of them has in her/ his account now?

a. Alya

b. Bassam

c. Seham

Answer 1

SOLUTIONS:

(Note: As nothing is specifically mentioned, considering the interest is calculated on basis of Simple Interest)

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a) Alya

Principal amount (P)

= 500AED

Interest rate (R) = 4%

Time (T) = 25 years

Simple interest

= (PxRxT)/100

= (500 x 4 x 25)/100

= 500

Amount after 25 years

= Principal + Simple Interest

= 500 + 500

= 1000

Hence, Alya has 1000AED in her account.

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b) Bassam

Principal amount (P)

= 500AED

Interest (R) = 5%

Time = 20 years

Simple Interest

= (PxRxT)/100

= (500 x 5 x 20)/100

= 500

Amount after 20 years,

= Principal + Simple Interest

= 500 + 500

= 1000

Hence, Bassam has 1000AED in his account.

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c) Seham

Principal amount (P)

= 500AED

Interest (R) = 20%

Time (T) = 5 years

Simple Interest

=(PxRxT)/100

= (500 x 20 x 5)/100

= 500

Amount after 5 years,

= Principal + Simple Interest

= 500 + 500

= 1000

Hence, Seham has 1000AED in his account.