JAMB Mathematics 2023 Paper

Concept:Compound interest is the difference between the final amount and the original principal after interest is added yearly.Explanation:Principal, $P = ₦15{,}700$Rate, $R = 8\%$ per annumTime, $t = 2$ yearsAmount after compound interest is given by:$$A = P\left(1 + \frac{R}{100}\right)^t$$Substitute the values:$$A = 15{,}700\left(1 + \frac{8}{100}\right)^2$$$$A = 15{,}700(1.08)^2$$$$A = 15{,}700 \times 1.1664$$$$A = ₦18{,}312.48$$Since the compound interest is the amount minus the principal:$$CI = A - P$$$$CI = ₦18{,}312.48 - ₦15{,}700$$$$CI = ₦2{,}612.48$$Answer:The compound interest is ₦2,612.48, which corresponds to option D.