Question

interest is compounded yearly.
(a) * 300 at 3% per annum for 2 years.​

Answer 1

Answer:

If the borrower and the lender agree to fix up an interval of time (say, a year or a half year or a quarter of a year etc) so that the amount (Principal + interest) at the end of an interval becomes the principal for the next interval, then the total interest over all the intervals, calculated in this way is called the compound interest and is abbreviated as C.I.