1. **State the problem:** 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 $A$ after $t$ years with principal $P$, rate $r$ (as a decimal), compounded annually is:
$$A = P(1 + r)^t$$
The compound interest $CI$ is:
$$CI = A - P$$
3. **Given values:**
$P = 1200$
$r = 10\% = 0.10$
$t = 2$
4. **Calculate the amount $A$:**
$$A = 1200(1 + 0.10)^2 = 1200(1.10)^2$$
$$A = 1200 \times 1.21 = 1452$$
5. **Calculate the compound interest $CI$:**
$$CI = A - P = 1452 - 1200 = 252$$
**Final answers:**
a. Amount after 2 years is $1452$
b. Compound interest earned is $252$
Compound Interest 7Cccca
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