Question
What will be the net CI on Rs. 5000 for 4 years at 30%
p.a compounded annually?Solution
Net CI for 2 years = 30 + 30 + (30 x 30/100) = 69% So Net CI for 4 years = 69 + 69 + (69 x 69/100) = 138 + 47.61 = 185.61% Hence net CI = 185.61% of Rs. 5000 = Rs. 9280.5
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