Question
The interest earned on investing Rs. 9000 for 2 years at
the rate of 10% p.a., compounded annually, is used to purchase an article. If the article is later sold at 27% profit, then find the selling price of the article.Solution
Compound interest earned = 9000 × {1 + (10/100)}2 – 9000 = 10890– 9000 = Rs. 1890 So, selling price of the article = 1890 × 1.27 = Rs. 2400.3
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