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    Question

    Rs. 7500 when invested at simple interest of r% p.a.

    amounts to Rs. 9000 in 24 months. If the same sum had been invested for 1 year at compound interest of (r + 20) % p.a. (compounded in every 4 months), then the amount received would be?
    A 9282.5 Correct Answer Incorrect Answer
    B 9382.5 Correct Answer Incorrect Answer
    C 9982.5 Correct Answer Incorrect Answer
    D 9682.5 Correct Answer Incorrect Answer

    Solution

    According to the question, 9000 тАУ 7500 = (7500 ├Ч r ├Ч 24) ├╖ (12 ├Ч 100) Or, 1500 = 150 ├Ч r Or, r = 10 When the sum is invested at compound interest, Effective rate of interest = (r + 20) ├╖ 3 = (10 + 20) ├╖ 3 = 10% Effective time period = 1 ├Ч 3 = 3 units Amount received = Principal ├Ч {1 + (r/100)}time period = 7500 ├Ч {1 + (10/100)}3 = 7500 ├Ч (1.1)3 = 9982.5

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