Question

Find the compound interest on 28,000 for 3 years at 5% per annum compounded annually.j
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Answer 1

Answer:

$a = p \times (1 + \frac{r}{100} )$

$a - p = \: compund \: intrest$

$28000 \times \frac{105}{100} - 28000$

$i = p \times (1 + \frac{r}{100} ) - p$

$i = 28000 \times (1 + \frac{5}{100} ) - 28000$

$28000 \times \frac{105}{100} - 28000$

$29400 - 28000 = 1400$

$i = 1400$