Question
A principal amount of ₹5p grows
to ₹(5p + 660) in 2 years at an annual interest rate of 20% compounded yearly. Determine the compound interest earned when ₹30p is invested for 1 year at an annual interest rate of 30%, compounded semi-annually.Solution
ATQ, 5p(1+20/100)2 = 5p+660 5p(120/100)2 = 5p+660 5p(6/5)2 = 5p+660 5p(36/25) = 5p+660 36p = 25p+3300 p = Rs.300 30p = Rs.9000 Required answer = 9000[(1+15/100)2 -1] = Rs.2902.5
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