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On account A, the rate of interest is 5% per annum. (a) Based on dividing the amount of interest equally between the first and second
On account A, the rate of interest is 5% per annum.
(a) Based on dividing the amount of interest equally between the first and second halves of theyear, state the rate of interest for a 6-month period (simple interest method).
(b) Based on the same proportional increase in the amount over the first and second halvesof the year, calculate the rate of interest for a 6-month period (compound interest method).
Can explain how to do question b?
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