ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At what rate of compound interest per annum will a sum of £1200 become £1348.32 in 2 years?
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6%
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6.5%
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7%
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7.5%
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Explanation:
Detailed explanation-1: -134832=1200(1+R100)2(1+R100)2=1348.301200(1+R100)2=1123610000(1+R100)=106100R=
Detailed explanation-2: -Then, 1200×(1+R100)2=1348.321200×(1+R100)2=1348.32%
Detailed explanation-3: -In 3 years Rs. 1000000 will amount to Rs. 1225043 at 7% per annum.
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