Answer:
(a) $ 1191
(b) $ 1966.8
Step-by-step explanation:
Principal, P= $ 10000
Rate of interest, r = 6 % per year
time, t = 3 years = 36 months
(a) Interest per year
The amount is given by
[tex]A = P \times \left ( 1+\frac{r}{100} \right )^{t}\\\\A = 10000 \times \left ( 1+\frac{6}{100} \right )^{3}\\\\A = 10000 \times 1.191\\\\A = 11910.2[/tex]
Interest is given by = $11910.2 - $10000 = $ 1910.6
(b) interest per month
The amount is given by
[tex]A = P \times \left ( 1+\frac{r}{100} \right )^{t}\\\\A = 10000 \times \left ( 1+\frac{6}{1200} \right )^{36}\\\\A = 10000 \times 1.1967\\\\A = 11966.8[/tex]
Interest paid is = $ 11966.8 - $ 10000 = $ 1966.8
