To calculate the amount Vincent will have at the end of two years with compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (initial investment) = P500
r = the annual interest rate (as a decimal) = 0.10
n = the number of times that interest is compounded per year = 1 (compounded annually)
t = the number of years the money is invested for = 2
Plugging in the values:
A = P(1 + r/n)^(nt)
A = P(1 + 0.10/1)^(1*2)
A = P(1 + 0.10)^2
A = P(1.10)^2
A = P(1.21)
A = P * 1.21
A = P500 * 1.21
A = P605
Therefore, Vincent will have P605 at the end of two years with a 10% per annum compound interest on an initial investment of P500.
Vincent invest P500 at 10% per annum compound interest. How much will Vincent have at the end of two years
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