SOLUTION: find compound interest on $450 for 2 years at 10% per annum compounded yearly

Question 539049: find compound interest on $450 for 2 years at 10% per annum compounded yearly

Answer by jpg7n16(66) (Show Source): You can put this solution on YOUR website!
Use this formula:

p=original principal
i=interest rate per compounding period
n=number of compounding periods
x=new amount of money
So start pulling pieces from the question.
-What was the original amount you started with? $450 (p)
-What is the interest rate per compounding period? 10% (i)
-How many times does it compound? 2 (n)
-We are looking for X
So take the original formula

substitute in what you know, and solve for X

So you started with $450 and ended with $544.50. How much does that mean you earned?

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