Question

Find the compound interest on 2,000 for 2 years at 15% per annum compounded annually.

• A. 645
• B. 735
• C. 900
• D. 1000

Answer 1

Answer:

A. 645

$A = P\times (\text{1 + r})^t$

$=2000\times (1.15)^2 = 2645$

CI = 2645 - 2000 = 645