In one year a customer gets 5% interest on his £600 savings.

What does the customer get if fixed for 5 years.

What do they get for the next 5 years if this goes up to 6%?

What is the total for the 2 investments of 5 years as a grand total?

£ 750

£ 975

£ 975

Step-by-step explanation:

The formulae for simple interest is;

A = P(1 + rt)  Where:

   A = Total Accrued Amount (principal + interest)

   P = Principal Amount

   I = Interest Amount

   r = Rate of Interest per year in decimal; r = R/100

   R = Rate of Interest per year as a percent; R = r * 100

   t = Time Period involved in months or years

A = 600 (1 + 0.05 * 5)

A = 600 * 1.25

A = 750

A = 750 (1 + 0.06 * 5)

A = 750 * 1.3

A = 975

= £ 975

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