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    Question

    'A' invests Rs.10,000 for 3 years at a certain rate of

    interest. At the end of the second year, it amounts to Rs.11,664. Calculate the rate of interest per annum, if interest is compounded annually.
    A 7.9 Correct Answer Incorrect Answer
    B 8.5 Correct Answer Incorrect Answer
    C 8.7 Correct Answer Incorrect Answer
    D 8.0 Correct Answer Incorrect Answer

    Solution

    A = P x (1 + r / 100)t 11664 = 10000 (1 + r / 100)2 11664 / 10000 = (1 + r / 100)2 (108/100)2=(1 + r / 100)2 108/100 = 1 + r/100 108 -1/100 = r/100 8/100 = r/100 r = 8%

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