Question

Find the amount and the compound interest on $ 2500 for 2 years at 10% per annum, compounded annually.

Answer 1

Answer:

$\huge\underline\mathfrak\red{❥Answer}$

Step-by-step explanation:

Present value= R2500

Interest rate= 10% per annum

Time=2 years

To find the amount we have the formula,

Amount (A) = P(1+(R/100)"

where P is present value, r is rate of interest,

nis time in yearsS.

Now substituting the values in above

formula we get,

A 2500(1 + 10/100)2

A = 2500(11/10)2

A 2500(121/100)

A = 25(121)

A = 73025

Now,

Compound interest A-P

= 3025-2500 =525