Question

find the amount at compound interest that #600 would be at 3% the end of the first year, 2% at the end of the second year​

Answer 1

Explanation:

First we find the interest at the end of the first year.

Principal = #600

Rate = 3%

Time = 1 year

Interest =
`(600 * 3 * 1)/(100)`

= #18

Amount = #618 at the end of the first year

Now at the end of the second year.

Principal now = #618

Rate now = 2%

Time = 1 year

Interest =
`(618 * 2 * 1)/(100)`

= #12.36

Amount = #630.36 at the end of the second year