Find the compound interest (CI) on ₦15,700 for 2 years at 8% per annum compounded annually.

Answer Details

To find the compound interest (CI) on ₦15,700 for 2 years at 8% per annum compounded annually, we can use the formula for compound interest:
CI = P(1 + r/n)^(nt) - P
Where: - CI is the compound interest - P is the principal amount (₦15,700 in this case) - r is the annual interest rate (8% or 0.08 as a decimal) - n is the number of times the interest is compounded per year (since it's compounded annually, n is 1) - t is the number of years (2 in this case)
Now we can substitute the values into the formula:
CI = ₦15,700(1 + 0.08/1)^(1*2) - ₦15,700
Simplifying the equation:
CI = ₦15,700(1.08)^2 - ₦15,700
CI = ₦15,700(1.1664) - ₦15,700
CI = ₦18,312.48 - ₦15,700
CI = ₦2,612.48
Therefore, the compound interest (CI) on ₦15,700 for 2 years at 8% per annum compounded annually is ₦2,612.48.