Question

saleem took a loan of 120000 from a bank if the rate of interest is 5% per annum find the difference in amounts he could be paying after 1 1\2 years if the interest is compound annually 2) compound half yearly​

Answer 1

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Answer in the attachment ⛈

Assimilate:

Money is said to be lent at compound interest; when the interest which has become due at the end of a certain fixed period 1 year, half your etc, has given is not paid to the money lender, but is added to the sum lent. The amount thus obtained becomes the principal for the next period. This process is repeated until the money for the last period is found.

The difference between the final amount and the original principal is the required compound interest.

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