Question

solve question no. 4

Answer 1

Let amonut be x
Compound int. = p + (1 + r/100)^t
Compound int. = x = ( 1 + 12/100)^3/2
Compound int. = 1.18x. . . . . . Eq 1

Simple int. = prt/100
Simple int. = x * 12 * 1.5 / 100
Simple int. =0.18x. . . . . . . . . . Eq 2


Eq 1 - eq 2 = 150
1.18x - 0.18x = 150
X = 150