Calculate the compund intrect on #7400 in 4years at 6%per anul.if the compund intrect on #9000in 3years at 4%per anum
To calculate compound interest, we use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount including interest
P = the principal amount (the initial amount of #7400 or #9000 in your case)
r = the annual interest rate (6% or 4% in your case)
n = the number of times that interest is compounded per year (assuming it is compounded annually)
t = the number of years
Let's calculate the compound interest on #7400 in 4 years at 6% per annum:
P = #7400
r = 6% = 0.06
n = 1 (assuming annual compounding)
t = 4
Using the formula:
A = #7400(1 + 0.06/1)^(1*4)
A = #7400(1 + 0.06)^4
A = #7400(1.06)^4
A = #7400 * 1.26248
A = #9348.65
Therefore, the compound interest on #7400 in 4 years at 6% per annum is #9348.65 - #7400 = #1948.65.
Now let's calculate the compound interest on #9000 in 3 years at 4% per annum:
P = #9000
r = 4% = 0.04
n = 1 (assuming annual compounding)
t = 3
Using the formula:
A = #9000(1 + 0.04/1)^(1*3)
A = #9000(1 + 0.04)^3
A = #9000(1.04)^3
A = #9000 * 1.124864
A = #10123.77
Therefore, the compound interest on #9000 in 3 years at 4% per annum is #10123.77 - #9000 = #1123.77.