Compound Interest.xlsx

	A	B	C	D	E	F	G	H	I	J	K	L
1	Compound Interest part1
2
3	Question;			Calculate the compound interest earned and the amount accuring when
4				$	10000	is invested at		8	% per annum at		3	years
5
6	Note;principal at the beginning of the first year is $						10000		Hence finding interest of the first year
7
8	Method
9		Principal		$	10000		Rate	8	%	Time	1	year
10			1
11
12		Simple Interest =			Principal X Rate X Time				P X R X T
13			1			100			100
14
15				10000		8		1
16						100
17
18
19					80000
20					100
21
22				$	800
23
24		Principal at the beginning of the secound year						P	P	I
25								2	1	1
26
27						P	$	10000	$	800
28						2
29							$	10800
30
31		Simple Interest =			Principal X Rate X Time				P X R X T
32			2			100			100
33
34				10800		8		1
35						100
36
37
38					86400
39					100
40
41				$	864
42
43		Principal at the beginning of the third year						P	P	I
44								3	2	2
45
46						P	$	10800	$	864
47						3
48							$	11664
49
50		Simple Interest =			Principal X Rate X Time				P X R X T
51			3			100			100
52
53				11664		8		1
54						100
55
56
57					93312
58					100
59
60				$	933.12
61
62		Hence Compound Interest C.I.				I	I	I
63						1	2	3
64
65					800		864		933.12
66
67						$	2597.12
68
69
70		The amount accruing, A			P	I
71					3	3
72
73					11664		933.12
74
75						$	12597.12
76				OR
77
78		The amount accruing, A			P	C.I.
79					1
80
81					10000		2597.12
82
83						$	12597.12
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