Invested K8000 for 5 years at 10%.compound interests.
Work out the interest earned for 5 years?
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ChatGPT
Jun 6
To calculate the interest earned for 5 years on an investment of K8000 at 10% compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where: A = the future value of the investment P = the principal amount (K8000) r = the annual interest rate (10% or 0.10) n = the number of times the interest is compounded per year (assuming it is compounded annually, n = 1) t = the number of years the money is invested for (5 years)
Plugging in the values:
A = K8000(1 + 0.10/1)^(1*5) A = K8000(1.10)^5 A = K8000(1.61051) A = K12884.08
Now, to calculate the interest earned, we subtract the principal amount from the future value:
Therefore, the interest earned for 5 years on an investment of K8000 at 10% compound interest is K4884.08.
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Google Gemini AI
Jun 6
Formula for Compound Interest:
P(1 + r/n)^(nt)
where: P = Principal (initial investment) r = Annual interest rate (as a decimal) n = Number of times interest is compounded per year t = Number of years
Given: P = K8000 r = 10% = 0.1 n = 1 (once per year) t = 5