Question

Compound interest for a certain amount at 13% p.A for 2 years exceeds

Answer 1

let the p=
then int on 1st year= 13
next year p= 113
int in 2 nd year= 14.69

amt=113+114.69=227.69

Answer 2

Question

Compound interest for a certain amount at 13% p.A for 2 years exceeds

Compound interest is the addition of interest to the sum of principal or total deposit . Th rate to which compound interest grow is normally stated for instance in this case it is 13% per year.

This means in mathematical terms, the amount of the principal will be increasing by 13% in every year.

This is a method by which individuals in business ensures that they make profit out of the investment on goods and services offered.

This is done in calculation to ensure the accuracy and the total value expected in future

The formula used in Microsoft excel is as shown in the attachment.