Question
A sum increases by 40% in 4 years at simple interest.
What will be the compound interest on Rs 14000 at the same rate after 3 years?Solution
If 40% increase in 4 years under simple interest, then the annual rate is:
Rate per year =40%/4 = 10% per annum A = P ( 1 + R/100 ) T A = 14,000 (1 + 10/100)3 = 18634 CI = 18634 - 14000 = 4634
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