Calculate the compound interest on 7400 naira for 4yeats at 6%

March 30, 2026Chemistry

ScanSolve AI Answer

Answer

\text{1942.33 naira}

3 steps

Identify the given values.
Principal ( $P$ ) = 7400 naira
Time ( $t$ ) = 4 years
Annual interest rate ( $r$ ) = 6% = 0.06
Use the compound interest formula to find the total amount ( $A$ ).
The formula for the amount with compound interest is:
$A = P(1 + r)^t$
Substitute the given values:
$A = 7400(1 + 0.06)^4$ $A = 7400(1.06)^4$
Calculate $(1.06)^4$ :
$(1.06)^4 \approx 1.26247696$
Now, calculate $A$ :
$A = 7400 \times 1.26247696$ $A \approx 9342.33$
So, the total amount after 4 years is approximately 9342.33 naira.
Calculate the compound interest ( $CI$ ).
Compound Interest ( $CI$ ) is the total amount minus the principal:
$CI = A - P$ $CI = 9342.33 - 7400$ $CI = 1942.33$
The compound interest is $\text{1942.33 naira}$ .