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According to the question, 18515= 14000 (1 + R/100)2 1.3225 = (1 + R/100)2 1.15 =1 + R/100 R = 0.15 × 100 = 15% Now the interest when compounded 8 monthly. Number cycles for 2 years = (2 x 12)/8 = 3 Now the new rate will be 15 x 8/12. = 10%. Amount = 14000 (1 + 10/100)3 Amount = 14000 (110/100)3 Amount = 14000 (1.331) = Rs. 18634 CI = 18634-14000 = Rs. 4634 The interest is compounded 8-monthly is Rs. 4634.
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