Subjects finance

Compound Interest 4B7393

Step-by-step solutions with LaTeX - clean, fast, and student-friendly.

Use the AI math solver

1. **Problem:** Find the amount of 800 in 4 years at 6% per annum compound interest. 2. **Formula:** The compound amount is given by $$ A = P \left(1 + \frac{r}{100}\right)^n $$ where $P$ is the principal, $r$ is the annual interest rate, and $n$ is the number of years. 3. **Given:** - $P = 800$ - $r = 6$ - $n = 4$ 4. **Calculation:** $$ A = 800 \left(1 + \frac{6}{100}\right)^4 = 800 \left(1 + 0.06\right)^4 = 800 \times 1.06^4 $$ 5. Calculate $1.06^4$: $$ 1.06^4 = 1.06 \times 1.06 \times 1.06 \times 1.06 = 1.26247696 $$ 6. Multiply by principal: $$ A = 800 \times 1.26247696 = 1009.98 $$ 7. **Answer:** The amount after 4 years is approximately **1009.98**. 8. To find the compound interest (CI), subtract principal from amount: $$ CI = A - P = 1009.98 - 800 = 209.98 $$ **Final answer:** The amount is **1009.98** and the compound interest is **209.98**.