FIND THE COMPOUND INTEREST ON THE FOLLOWING
50,000 FOR 2YR AT 6% PER ANNUM
30,000 FOR 2YRS AT 5% PER ANNUM
600,000 FOR 2YRS AT 5% PER ANNUM
To find the compound interest, we can use the formula:
Compound Interest = Principal x (1 + Rate/100)^Time - Principal
For the first case:
Principal = $50,000
Rate = 6% per annum = 6/100 = 0.06
Time = 2 years
Compound Interest = $50,000 x (1 + 0.06)^2 - $50,000
= $50,000 x (1.06)^2 - $50,000
= $50,000 x 1.1236 - $50,000
= $56,180 - $50,000
= $6,180
The compound interest on $50,000 for 2 years at 6% per annum is $6,180.
For the second case:
Principal = $30,000
Rate = 5% per annum = 5/100 = 0.05
Time = 2 years
Compound Interest = $30,000 x (1 + 0.05)^2 - $30,000
= $30,000 x (1.05)^2 - $30,000
= $30,000 x 1.1025 - $30,000
= $33,075 - $30,000
= $3,075
The compound interest on $30,000 for 2 years at 5% per annum is $3,075.
For the third case:
Principal = $600,000
Rate = 5% per annum = 5/100 = 0.05
Time = 2 years
Compound Interest = $600,000 x (1 + 0.05)^2 - $600,000
= $600,000 x (1.05)^2 - $600,000
= $600,000 x 1.1025 - $600,000
= $661,500 - $600,000
= $61,500
The compound interest on $600,000 for 2 years at 5% per annum is $61,500.