Question

calculate the compound interest and amount on 10000 for 2 years at 8% per annum, compounded annually ​

Answer 1

To Find:

         Compound interest (C.I)

Given:

    Principle amount (p) = 10,000.

   Interest rate (r) = 8% per annum = 8/100 = 0.08.

   Compounded (n) = 1 year.

   Time in years (t) = 2.

Formula:

 A = P(1+r/n)^nt.

 A = 10,000(1+0.08/1)^2

 A = 10,000(1+0.08)^2

 A = 10,000(1.08)^2

 A = 10,000(1.1664)

 A = 11664.

Now, we need to find the C.I

C.I = A - P

C.I = 11664 - 10,000

C.I = 1664.