Question
Jeeva invested Rs. 30,000 at a compound interest rate of
24% per annum, compounded annually, for 2 years. After these two years, she decided to utilize the interest she earned to purchase Tata Stocks. If each unit of Tata Stocks costs Rs. 4,800, how many units of the stock can she acquire using the entirety of her interest earnings?Solution
ATQ, Amount received by Jeeva after 2 years = 30000 × (1.24)2 = Rs.46,128 So, interest earned by Jeeva after 2 years = 46,128 – 30,000 = Rs. 16,128 So, quantity of Tata stocks that Jeeva can buy is = 16,128 ÷ 4800 = 3.36 units
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