Answer:
i) 8%
ii) 16,872.96
Step-by-step explanation:
A) Since she borrowed 15000 and at the end of six months it amounted to 15600. What it means is that;
Interest; i = 15600 - 15000 = 600
Now,formula for rate of interest is;
R = (100i)/(Pt)
Where;
i = 600
P is amount borrowed = 15000
t is time period compounded. Since it's compounded semi annually, then t = ½
Thus, from PRT/100 = i, we can find R as;
R = (100 × 600)/(15000 × (6/12))%
R = 8%
B) After 12 months, which is another semi annual period after 6 months, the Interest will now be;
15600 × 8% × (6/12) = 624
Thus, amount due at this point is 15600 + 624 = 16224
After 18 months which is another semi annual period after 12 months, the Interest will now be;
16224 × 8% × (6/12) = 648.96
Thus, amount due at this point is 16224 + 648.96 = 16,872.96
