Yee Miao Ling's answer to Kathy's Secondary 4 E Maths Singapore question.

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Yee Miao Ling
Yee Miao Ling's answer
29 answers (Tutor Details)
For the compound interest qn,use the compound int formula (should be in formula sheets during exams).

First find out the yearly interest rate which is 2% x12. Convert that to decimal, as per the formula.

Then calculate how many months the loan is for,which is 10 months. Typically t should be in years and n is the num of times interest is compounded per year

Since interest is compounded monthly. It would be compounded 12 times per year. N =12.
10 months is 10/12 = 5/6 of a year. Which is t.

Then just compute. :)