The annual interest of 9 % after 2 years is $ 1435.70 and after 2.5 year $ 1501.53.
The annual interest fee refers to the charge this is carried out over a length of 365 days. hobby costs can be applied over one-of-a-kind periods, together with monthly, quarterly, or bi-annually. but, in maximum cases, hobby quotes are annualized.
APY calculates that fee earned in 12 months if the interest is compounded and is a greater correct illustration of the actual charge of going back. APR consists of any costs or additional charges related to the transaction, but it does not remember the compounding of the hobby inside a selected 12 months.
Calculation:
First, converting R percent to r a decimal
r = R/100 = 9%/100 = 0.09 per year.
per month = 0.0075
PV = $1200
rate APR = 9/12 = 0.75 /100
= 0.0075
Period 24 months = 1435.70
Period 30 months = 1501.53
Learn more about the rate of interest here:-brainly.com/question/25793394
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