Question

find the amount and compound interest on $2500 at 10% p.a for 2 years compounded annually

Answer 1

Answer:

Hey Mate!!

Given,

Principal, P = $2500

Rate, R = 10% p.a.

Time, n = 2 years

$Compound\:\: Interest = P(1+\frac{R}{100})^{n} \\\\\implies 2500(1+\frac{10}{100})^{2}\\\\\implies 2500(\frac{110}{100})^{2}\\\\\implies 2500(\frac{11}{10})^{2}\\\\\implies 2500 \times \frac{11}{10} \times \frac{11}{10}\\\\\implies 25 \times 11 \times 11\\\\\implies \boxed{\bold{3025}}$

Therefore, the compound interest is $3025.

Amount = Principal + Compound Interest

→ 2500 + 3025

→ $5525