Question

find the compound interest on 5000 naira for 2years at 10% per annum​

Answer 1

Answer:

The compound interest after 2 years of loan is $1,050 .

Step-by-step explanation:

Given as :

The principal value = p = $5000

The rate of interest = r = 10%

The time period for the loan = t = 2 years

Let the compound interest = C.I

Now, From Compound Interest method

Amount = Principal × $(1+\dfrac{\textrm rate}{100})^{\textrm time}$

Or, A =  p × $(1+\dfrac{\textrm r}{100})^{\textrm t}$

Or, A =  $5000 × $(1+\dfrac{\textrm 10}{100})^{\textrm 2}$

Or, A =  $5000 × (1.1)²

Or, A =  $5000 × 1.21

Or, A = $6,050

So, The Amount after 2 years = A = $6,050

Now, Again

Compound Interest = Amount - Principal

So, C.I = A - p

Or, C.I = $6,050 - $5000

∴ C.I = $1,050

So, The compound interest = C.I = $1,050

Hence,The compound interest after 2 years of loan is $1,050 . Answer