Ali saves money in a bank account.
(a)Ali saves £400 in an account that pays simple interest of 5% of the original amount per year. How much interest has been added after 3 years?(2)
(b)Ali then withdraws the total amount in the account (his original £400 plus the interest from part a) and shares it equally between himself and 3 friends. How much does each person receive?(3)
(Total for Question 26 is 5 marks)