Question
Rs. 180000 is invested at x% simple interest for 5 years
and it becomes Rs. 207000. What will Rs. 120000 amount to if it is compounded for 2 years at (x + 2)% rate?Solution
ATQ,
180000 × [1 + (x/100) × 5] = 207000 So, x = 3 Rate of compound interest = 3 + 2 = 5% Required accumulated amount = 120000 × [1 + 5/100]² = 120000 × 1.1025 = Rs.132300
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