Question

Find the compound profit on 48000 at5%for one yeat

Answer 1

Answer:

Principal P = 48,000

Rate of Interest R = 5% = 0.05%

Time T = 1 year

Interest is compounded yearly once n = 1

Amount = $P(1 + \frac{R}{n}^{nT} )$

             = 48,000 (1 + 0.05)²

             = 48,000 x 1.1025

             = 52,920

Interest is A - P = 52,920 - 48,000

                         = 4,920