Answer:
[tex]C = 82[/tex]
Step-by-step explanation:
Given
[tex]R = 5\%[/tex] -- Rate
[tex]P = 800[/tex] -- Principal
[tex]N = 2[/tex] -- Time
Required
Determine the compound interest
First, we calculate the Amount (A)
[tex]A = P(1 + R)^N[/tex]
[tex]A = 800*(1 + 5\%)^2[/tex]
Express % as decimal
[tex]A = 800*(1 + 0.05)^2[/tex]
[tex]A = 800*(1.05)^2[/tex]
[tex]A = 882[/tex]
The compound interest (C) is then calculated as:
[tex]C = A -P[/tex] i.e. Amount - Principal
[tex]C = 882 - 800[/tex]
[tex]C = 82[/tex]
