Question
If ₹15,600 is invested at a
simple interest rate of (a + 12)% per annum and doubles in value over 5 years, determine the value of 'a'.Solution
ATQ, 15600 = [{15600 × (a + 12) × 5}/100] Or, 5a + 60 = 100 Or, 5a = 40 So, a = 8 Therefore, value of ‘a’ = 8 Alternate Solution Total interest earned in 5 years = 100% So, interest earned each year = (100/5) = 20% So, a + 12 = 20 Or, a = 8
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