Find the compound interest (CI) on N15,700 for 2 years at 8% per annum compounded
MATHEMATICS
JAMB 2023
Find the compound interest (CI) on N15,700 for 2 years at 8% per annum compounded annually.
- A. N6,212.48
- B. N2,834.48
- C. N18,312.48
- D. N2,612.48
Correct Answer: D. N2,612.48
Explanation
Principal (P) = N15,700
Rate (R) = 8
Number of years (t) = 2
A = P \((1+\frac{R}{100})^t\)
⇒ A = 15700 \((1+\frac{8}{100})^2\)
⇒ A = 15700 (1 + 0.08)\(^2\)
⇒ A = 15700 (1.08)\(^2\)
⇒ A = 15700 x 1.1664
⇒ A = N18,312.48
Total amount, A = N18,312.48
A = P + CI
⇒ CI = A - P
⇒ CI = 18,312.48 - 15,700
∴ CI = N2,612.48
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *