ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At what rate per cent per annum will a sum of $ 7500 amount to Rs 8427 in 2 years, compounded annually? ____
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4 %
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5 %
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6 %
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8 %
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Explanation:
Detailed explanation-1: -7500Amount (A) = 8427Period = 2 yearsLet R be the rate of p.a., then∴ AP=(1+R100)n⇒ 84277500 = (1+R100)2⇒ 28092500=(1+R100)2⇒ (5350)2=(1+R100)2∴ 1+R100=5350⇒ R100=5350−1=350∴ R=350×100=6%
Detailed explanation-2: -7500 amounts to Rs. 9075 at 10% p.a, interest b.
Detailed explanation-3: -∴ The rate of interest per annum is 7%.
Detailed explanation-4: -9000 at 4 % per annum simple interest. Topic : Simple Interest. See what the community says and unlock a badge.
Detailed explanation-5: -Hence, the compound interest on Rs. 50000 at 8% per annum for 2 years compounded annually is 8320 rupees.
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