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Maths FROM 2
Chap4: arithmetic processes
Compound interest (c.I)Ex: a) what is the compound interest on 200000frs in 4 years at 3.5% per annum
Solution: a) Principal = 200000frs
Interest for first year = 3.5*200000*1100
= 7000frs
Principal for first year = 200000 + 7000 = 207000frs
Interest for second year = 3.5*207000*1100
= 7245frs
Principal for second year = 207000 + 7245 = 214245frs
Interest for third year = 3.5*214245*1100
= 7499frs
Principal for third year = 214245 + 7499 = 221743frs
Interest for fourth year = 3.5*221743100
= 7761frs
Principal for fourth year= 221743 + 7761 = 229504frs
Compound interest = 229504 – 200000 = 29504frs
par Claude Foumtum