Question
A sum of Rs. 'p' is invested at a
compound interest rate of 15% per annum, compounded once every 8 months. After 16 months, the total interest earned is Rs. 1785. Determine the value of 'p'.Solution
ATQ,
Eective time = (16/8) = 2 terms Eective rate of interest = 15 × (8/12) = 10% So, interest earned = p(1 + 10/100)2 – p = 1785 Or, 1.21p – p = 1785 Or, p = 1785 ÷ 0.21 = 8500
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