What is the compounded annual interest for a loan amount of800000 at 1

1.	What is the compounded annual interest for a loan amount of800000 at 10% per annum for a period of 2 year
Answer» Given: Principal,P = 80,000 Rate,r = 10% TIME, n = 2 years To find out: Find the AMOUNT and Compound interest. FORMULA used: $\boxed { \red{A = P \times (1 + \frac{r}{100} ) {}^{n} }}$ $\boxed{ \red{Compound \: interest = A - P}}$ Solution: $A =800000 \times (1 + \frac{10}{100}) {}^{2}$ $= 800000 \times ( \frac{100 + 10 }{100} ) {}^{2}$ $= 800000 \times ( \frac{110}{100} ) {}^{2}$ $= 800000 \times \frac{11 0}{100} \times \frac{110}{100}$ $= 800000 \times \frac{12100}{10000}$ $= 8000 \times 121$ $= 968000$ Now, $Compound \: interest = A - P$ $= 968000 - 800000$ $= 168000$