Question

How to calculate the compound interest and amount if interest is compounded annualy
(a)Principal=5000,time=3years and rate=12% per annum

Answer 1

Answer:

part A) principal=5000

rate=12=12/2=6

time=3

amount =5000(1+6/100)power 3

5000(100+6/100)3

5000(106/100)3

5000x106/100x106/100x106/100

=5955.08

compound interset=amount-principal

=5955.08-5000

=955.08

part B

Step-by-step explanation: