find the compound interest on 2650 naria in 5yrs at 7 and half % per annum.
To find the compound interest on 2650 naira in 5 years at a rate of 7.5% per annum, you can use the compound interest formula:
A = P(1 + r/n)^(nt)
where:
A = the future value or total amount including interest
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = the number of years
In this case, the principal amount (P) is 2650 naira, the annual interest rate (r) is 7.5% (or 0.075 in decimal form), n is typically 1 since it is compounded annually, and t is 5 years.
Plugging in the values into the formula:
A = 2650 * (1 + 0.075/1)^(1*5)
A = 2650 * (1 + 0.075)^5
Now, calculate the value inside parentheses first:
(1 + 0.075)^5 = 1.075^5
Using a calculator or exponentiation, you calculate:
1.075^5 ≈ 1.40507
Now, multiply the principal amount by this result:
A = 2650 * 1.40507
Calculate the final value:
A ≈ 3720.72
Therefore, the compound interest on 2650 naira in 5 years at a rate of 7.5% per annum is approximately 1070.72 naira.