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23 votes
Find the compound interest on $4000 for 2 years and 3months at 2% per annum,

compounded annually.

User Jim Maas
by
7.8k points

1 Answer

0 votes

Answer:

CI = $182.25

Explanation:

Compound interest formula:


Compound \space\ Interest= P(1 + (r)/(100))^(n) - P ,

where P is the principal amount ($4000), r is the interest rate (2%), and n is the time period (2 years and 3 months = 2.25 years).

Using formula:

CI =
4000(1 + (2)/(100) )^(2.25) - 4000

CI = $182.25

User Bergant
by
8.7k points

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