Question

Principal, 2000​$​; Annual interest​ rate, ​5.5%; ​time, 4 years

Answer 1

$440

Explanation:

Interest=Principal × Rate × Time/100(Formula)

We have to find the Interest.

Interest = $2000× 5.5 × 4/100

100 Interest = 44000

Interest = 44000/100

Interest = $440(Answer)

Answer 2

simple interest

formula = PRT/100

P = 2000$

rate = 5.5%

time = 4 years

= 2000 x 5.5 x 4 / 100

= 440$

amount = S.I. + P

= 2000 + 440

= 2440

compound interest

formula for amount = P( 1 + r/100 )^n

= 2000( 1 + 5.5/100 )^4

= 2000 (100/100 + 5.5/100)^4

= 2000 ( 105.5/100 )^4

2000 x 105.5/100 x 105.5/100 x 105.5/100 x 105.5/100

= 2 x 105.5 x 105.5/10 x 105.5/100 x 105.5/100

= 211 x 105.5/10 x 105.5/100 x 105.5/100

= 2215.5 x 105.5/100 x 105.5/100

= 2,454.22

compound interest = A - P

= 2454.22 - 2000

= 454.22