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8. Mr. Alpha needs Rs. 300,000 for the marriage of her daughter. He approached one of the money lenders for borrowing loan. The lender agreed to lend Rs. 200,000 for a period of five (5) years with an interest rate of 18% p.a. It was agreed that interest will be paid annually and the principal amount will be paid at maturity i.e. after five (5) years. It was also agreed that incase of late payment, Mr. Alpha would be liable to pay compound interest. Mr. Alpha did not pay any interest annually. After two (2) years he was able to save such amount which was sufficient to early repay the principal along with the accrued interest. He fully repaid the principal and the interest as agreed. Required: [3 marks) i. Identify the kind of interest? ii. Calculate the amount of interest paid by Mr. Alpha after 2 years. 8. Mr. Alpha needs Rs. 300,000 for the marriage of her daughter. He approached one of the money lenders for borrowing loan. The lender agreed to lend Rs. 200,000 for a period of five (5) years with an interest rate of 18% p.a. It was agreed that interest will be paid annually and the principal amount will be paid at maturity i.e. after five (5) years. It was also agreed that incase of late payment, Mr. Alpha would be liable to pay compound interest. Mr. Alpha did not pay any interest annually. After two (2) years he was able to save such amount which was sufficient to early repay the principal along with the accrued interest. He fully repaid the principal and the interest as agreed. Required: i. Identify the kind of interest? ii. Calculate the amount of interest paid by Mr. Alpha after 2 years