The amount A to which a principal P amounts at r% compound interest for n years is given by the formula A = P(1 + (r ÷ 100))n. Find A, if P = 126, r = 4 and...
Question 1 Report
The amount A to which a principal P amounts at r% compound interest for n years is given by the formula A = P(1 + (r ÷ 100))n. Find A, if P = 126, r = 4 and n = 2.
Answer Details
The formula for finding the amount of interest earned on a principal amount is given as A = P(1 + (r ÷ 100))n, where P is the principal amount, r is the interest rate, and n is the number of years the money is invested for.
Using the given values of P = 126, r = 4 and n = 2, we can plug these values into the formula and find A:
A = 126 * (1 + (4 ÷ 100))^2 = 126 * (1 + 0.04)^2 = 126 * 1.04^2 = 126 * 1.0816 = 136.30
So, the amount A to which the principal of 126 amounts at 4% compound interest for 2 years is ₦136.30K.
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