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Find the compound interest and final amount $950 for 2 years at 7½ per annum​

1 Answer

9 votes

Answer:

1092.50 account value

142.50 interest

Explanation:

to solve compound interest questions we use the formula A=P(1+rt) where P is the principal (initial investment) r is the rate or the return (7.5%) and t is the interval or time so 2 years

now putting it together we get A=950(1+ (7.5x2)) = 1092.50 $

the interest is this value A minus the initial investmetn so 1092.50 - 950 = 142.50$

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