Question

Calculate the interest on $7000 for 2 years at the rate of 8%per annum when the interest is compound annually?

Answer 1

Hey here is your answer

Your question is :-

Calculate the interest on $7000 for 2 years at the rate of 8%per annum when the interest is compound annually?

Your answer is :-

principle = $7000
time = 2 years
rate = 8%

To find :- interest

As we know the formula

$a \: = p(1 + \frac{r}{100} {)}^{t} \\ \\ a \: = 7000(1 + \frac{8}{100} {)}^{2} \\ \\ a \: = 7000 \times ( \frac{108}{100} {)}^{2} \\ \\ a \: = 7000 \times \frac{108}{100} \times \frac{108}{100} \\ \\ a \: = 7 \times 108 \times \frac{108}{10} \\ \\ a \: = \frac{81648}{10} \\ \\ a \: = 8164.8$
So, the amount is $8164.8.

Now, we have to find the interest

interest = amount - principle

interest = $8164.8 - $7000

interest = $1164.8

Hope this helps you

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