Question
What will be the net CI on Rs. 8000 for 4 years at 20%
p.a compounded annually?Solution
Net CI for 2 years = 20 + 20 + (20 x 20/100) = 44% So Net CI for 4 years = 44 + 44 + (44 x 44/100) = 88 + 19.36 = 107.36% Hence net CI = 107.36% of Rs. 8000 = Rs. 8588.8
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