Question

A man invests K8 000 for 5 years at 10%p.a. compound interest.

Calculate the investment value at the end of 5 years.​

Answer 1

Explanation:

Compoud interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. the formula is:

`c_n=c_o(1+i)^n\\\\c_o->initial~invesment\\i->interest\\n->number~of~ intervals`

`c_5=8000(1+(10)/(100))^5\\c_5=12848.88`