Question

Find the compound interest on 800 at 5% per annum for 2 years.​

Answer 1

Answer:

$C = 82$

Step-by-step explanation:

Given

$R = 5\%$ -- Rate

$P = 800$ -- Principal

$N = 2$ -- Time

Required

Determine the compound interest

First, we calculate the Amount (A)

$A = P(1 + R)^N$

$A = 800*(1 + 5\%)^2$

Express % as decimal

$A = 800*(1 + 0.05)^2$

$A = 800*(1.05)^2$

$A = 882$

The compound interest (C) is then calculated as:

$C = A -P$ i.e. Amount - Principal

$C = 882 - 800$

$C = 82$