Colin invests £3700 into his bank account. He receives 7% per year simple interest. How much will Colin have after 4 years? Give your answer to the nearest penny where appropriate.

£4,736

Step-by-step explanation:

To calculate the amount received, we simply use the formula for simple interest

Mathematically;

S.I = PRT/100

From the question, P is the principal= 3,700

R is rate = 7%

T is time = 4 years

So the next thing to do is to substitute the values in the equation

Thus, we have;

I = 3700 * 7 * 4/100 = £1,036

So the amount he will have after 4 years will be :

1036 + 3700 = £4,736

rounding to the nearest thousandth would be 452,000