1. **Problem statement:** Adwoa invested 1200 at 10% per annum compound interest for 2 years. We need to find:
a. The amount at the end of 2 years
b. The compound interest earned
2. **Formula for compound interest:**
The amount after $n$ years with principal $P$ and rate $r$ compounded annually is given by:
$$ A = P \left(1 + r\right)^n $$
where $r$ is in decimal form.
3. **Calculate the amount:**
Given $P = 1200$, $r = 0.10$, and $n = 2$:
$$ A = 1200 \left(1 + 0.10\right)^2 = 1200 \times 1.10^2 $$
Calculate $1.10^2$:
$$ 1.10^2 = 1.10 \times 1.10 = 1.21 $$
So,
$$ A = 1200 \times 1.21 = 1452 $$
4. **Calculate the compound interest:**
Compound interest is the amount minus the principal:
$$ CI = A - P = 1452 - 1200 = 252 $$
**Final answers:**
a. Amount after 2 years = 1452
b. Compound interest = 252
Compound Interest 596Ed8
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