Answer:
$115.92
Step-by-step explanation:
To calculate compound interest, which Amount - Principal but we dont know the value for amount so we find the amount first by using the formula.
A = P ( 1 + <u>R</u> ) ^n
100
where p = principal ($800)
a = amount (?)
r = interest rate (7%)
n = time ( no of years) (2)
A = 800 ( 1 + <u>7 </u>) ^2
100 A = 800 ( 1 + 0.07) ^2
A = 800 ( 1.07)^2 = 800 ( 1.1449)
A = 915.92.
We then find compound interest with:
C = Amount - Principal = $915.92 - $800 = $115.92
