Calculate the compound interest on 7400 naira for 4yeats at 6%
This chemistry question involves key chemical concepts and calculations. The detailed solution below walks through each step, from identifying the reaction type to computing the final answer.
ScanSolve AI Answer
Step 1: Identify the given values.
Principal ($P$) = 7400 naira
Time ($t$) = 4 years
Annual interest rate ($r$) = 6% = 0.06
Step 2: 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.
Step 3: 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 $\boxed{\text{1942.33 naira}}$.
