Question

Calculate the compound interest and amount, by using
the formula, if interest is compounded
annually.
(a) Principal = 5000, time = 3 years,
rate = 12% p.a.
(b) Principal = * 2500, time = 3 years,
rate = 6% p.a.
(c) Principal = 12000, time = 2 years, rate = 8%
​

Answer 1

Step-by-step explanation:

part A) principal=5000

rate=12=12/2=6

time=3

amount =5000(1+6/100)power 3

5000(100+6/100)3

5000(106/100)3

5000x106/100x106/100x106/100

=5955.08

compound interset=amount-principal

=5955.08-5000

=955.08

part B

Answer 2

(b) Principal = * 2500, time = 3 years,

rate = 6% p.a.