A loan is borrowed for $1200 for 2 years at a compound interest of 6%. Interest is compounded annually. What is the compound amo
2 answers:
You might be interested in
<u><em>Answer:</em></u>
<u><em /></u>
<u><em>Explanation:</em></u>
<u>Before we begin, remember the following rules:</u>
<u>1- Distribution property:</u>
<u />
<u>2- Simplification of fractions:</u>
<u />
<u>3- Signs in multiplication:</u>
+ve * +ve = +ve
-ve * -ve = +ve
+ve * -ve = -ve
<u>Now, for the given problem, we have:</u>
<u></u>
<u>Starting with the distributive property:</u>
<u />
..................>This corresponds to option 1
<u>Now, we simplify the output from the above step:</u>
<u />
................> This corresponds to option 5
Hope this helps :)