Question

*20,000 is lent for 2 years at 15% compound
interest. The compound interest if
compounded annually is
​

Answer 1

Answer:

Step-by-step explanation:

Amount = principle(1 + rate/100)²

Amount = 20000(1 + 15/100)²

Amount = 20000 x 23/20 x 23/20

Amount = 20000 x 529/400

Amount = 50 x 529

Amount = 26450

Compound interest = amount - principle

Compound interest = 26450 - 20000

Compound interest = 6450