Question
The interest earned on investing Rs. 2200 for 2 years at
the rate of 20% p.a., compounded annually, is used to purchase an article. If the article is later sold at 30% profit, then find the selling price of the article.Solution
Compound interest earned = 2200 × {1 + (20/100)}2 – 2200 = 3168– 220 = Rs. 968 So, selling price of the article = 968 × 1.30 = Rs. 1258.4
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c. Raw materials
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b. Is specific for substrate
c. Is consumed by the rea...
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