Question

calculate the amount and compound interest without using formula on $5000 for 3 year at 4% per annum compounded annually

Answer 1

Answer:

For First year          4%                                                     = 4

     Second year     4%  +  4*4/100                                  = 4.16

     Third year         4%  +  0.16%  +  0.16%  + 0.0064%  = 4.3264

     Total                                                                            = 12.4864

Now Calculating 5000*12.4864/100= 50*12.4864= 624.320(its compound interest)

Total amount after 3 yrs = 5000+624.320= 5624.320

Step-by-step explanation: