Question

Rahul invested
7,000 in shares for 2 years at the rate of 12% per annum compounded annually
What is the compound interest that Rahul gets after 2 years?​

Answer 1

Answer:

$8,780.80

Step-by-step explanation:

A = p(1+r/n)nt

A = 7000(1+0.12/1)1(2)

A = 7000(1.12)2

A = $8,780.80

 

We started at 7000 and ended with 8780.80

The interest is 8780.80 -7000 = $1,780.80

 

Check:  7000(1.12) = $7,840        total after 1 year

            7840(1.12) =  $8,780.80 total after 2 years

Answer 2

$p \times 1+r \div 100 {}^{n}$

her principle= 7000

rate=12%

n=2

$7000 \times 1 + 12 \div 100 {}^{2}$

$7000 \times 100 + 2 \div 100 {}^{2}$

$7000 \times 112 \div 100 {^{2}$

$70 \times 112$

$7840$

7840 is the answer