Question

Find compound interest on $7000 at 10% per annum for 2 year 5 months compounded annually

Answer 1

Answer:

please mark as branliest answer

Answer 2

Given:

Principal (P) = $7000

Rate (r) = 10 %

Time (n) = 2 years 5 months

To find:

Compound interest=?

Solution:

Formula:

$\Rightarrow \bold{A=P(1+\frac{r}{100})^n}$

Compound interest= A-P

Calculate time into months:

In 1 year total months 12

time = 2 years 5 month,  

total months:

$=\frac{24+5}{12}\\\\=\frac{29}{12}\\\\= 2.41$

put the value in the given formula:

$\Rightarrow A= 7000(1+\frac{10}{100})^{2.41}\\\\ \Rightarrow A= 7000(1+\frac{1}{10})^{2.41}\\\\ \Rightarrow A= 7000(\frac{11}{10})^{2.41}\\\\ \Rightarrow A= 7000 \times 1.1^{2.41}\\\\ \Rightarrow A= 7000 \times 1.1^{2.41}\\\\ \Rightarrow A=7000 \times 1.25\\\\ \Rightarrow A=8,750$

Finding compound interest:

$\Rightarrow C.I=A-P\\\\\Rightarrow C.I = 8,750-7,000\\\\\Rightarrow C.I= 1,750$

The final answer is "1,750"