Question: Q2. (25 points) Compound interest is computed using the principal amount, number of years, and annual rate of interest as follows: Compound Interest =

Q2. (25 points) Compound interest is computed using the principal amount, number of years, and annual rate of interest as follows: Compound Interest = Px (1+ R/100) where P: principal amount, n: number of years, R: annual rate of interest. calculate the compound interest on a principal amount of $5,000 for a duration of 5 years with the rate of interest equal to 4.5%.

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