Find the compound interest (CI) on ₦15,700 for 2 years at 8% per annum compounded annually.
A.
₦6,212.48
B.
₦2,834.48
C.
₦18,312.48
D.
₦2,612.48
Correct Answer: ₦2,612.48
Explanation
Principal (P) = ₦15,700
Rate (R) = 8
Number of years (t) = 2
A = P (1 + R/100)t
⇒ A = 15700 (1 + 8/100)2
⇒ A = 15700 (1 + 0.08)2
⇒ A = 15700 (1.08)2
⇒ A = 15700 x 1.1664
⇒ A = ₦18,312.48
Total amount, A = ₦18,312.48
A = P + CI
⇒ CI = A - P
⇒ CI = 18,312.48 - 15,700
∴ CI = ₦2,612.48
Principal (P) = ₦15,700
Rate (R) = 8
Number of years (t) = 2
A = P (1 + R/100)t
⇒ A = 15700 (1 + 8/100)2
⇒ A = 15700 (1 + 0.08)2
⇒ A = 15700 (1.08)2
⇒ A = 15700 x 1.1664
⇒ A = ₦18,312.48
Total amount, A = ₦18,312.48
A = P + CI
⇒ CI = A - P
⇒ CI = 18,312.48 - 15,700
∴ CI = ₦2,612.48
