Question

Find the compound interest on 16,000 for 2 years at 5%.​

Answer 1

Compound Interest= 1640

Step-by-step explanation:

GIVEN

Principal = 16000

Time = 2 years

Rate = 5%

Compound Interest = ?

___________________________

Compound Interest = Amount - Principal

To find the compound interest

we need to find the amount

Amount (A) = P [ 1 + ( r / 100)^n)

Amount (A) = 16000 [ 1 + (5 / 100)^n]

Amount (A) = 16000 × [1 + (0.05 ) ²]

Amount (A) = 17640

___________________________

Compound Interest = Amount - Principal

Compound Interest= 17640 - 16000

Compound Interest= 1640

Compound Interest= 1640