Find the amount if simple interest is paid yearly at 5% per annum for 3 years, on a principal of # 200,000.00

To find the amount when simple interest is paid yearly, we need to first calculate the simple interest itself and then add it to the principal. The formula for simple interest is:

Simple Interest (SI) = Principal (P) × Rate (R) × Time (T)

Given:

• Principal (P) = #200,000.00
• Rate (R) = 5% per annum
• Time (T) = 3 years

Substitute the given values into the formula:

SI = #200,000.00 × (5/100) × 3

SI = #200,000.00 × 0.05 × 3

SI = #200,000.00 × 0.15

SI = #30,000.00

The simple interest earned after 3 years is #30,000.00.

To find the total amount, we add the simple interest to the principal:

Total Amount = Principal + Simple Interest

Total Amount = #200,000.00 + #30,000.00

Total Amount = #230,000.00

Therefore, when simple interest is paid yearly at 5% per annum for 3 years on a principal of #200,000.00, the total amount is #230,000.00.