Sure! Let's break this problem down step by step and find out how much money Jane will have in the bank after 3 years using simple interest.
### Step-by-Step Solution:
1. Identify the Principal Amount:
The principal (P) is the initial amount of money that Jane keeps in the bank. Here,
\(\[
P = £562
\]\)
2. Identify the Interest Rate:
The interest rate (r) provided by the bank is given as 2.5% per year. To use this in our calculations, we convert the percentage into a decimal by dividing by 100:
\(\[
r = \frac{2.5}{100} = 0.025
\]\)
3. Identify the Time Period:
The time period (t) for which the money is kept in the bank is 3 years. So,
\(\[
t = 3 \text{ years}
\]\)
4. Calculate the Simple Interest:
Simple interest can be calculated using the formula:
\(\[
\text{Interest} = P \times r \times t
\]\)
Substituting the given values:
\(\[
\text{Interest} = 562 \times 0.025 \times 3 = 42.15
\]\)
Thus, Jane earns an interest of £42.15 over 3 years.
5. Calculate the Total Amount:
The total amount (A) of money Jane will have in the bank after 3 years is the sum of the principal amount and the interest earned. So,
\(\[
A = P + \text{Interest}
\]\)
Substituting the values:
\(\[
A = 562 + 42.15 = 604.15
\]\)
Therefore, after 3 years, Jane will have a total of £604.15 in the bank.
