Question
What will be the net CI on Rs. 12000 for 4 years at 10%
p.a compounded annually?Solution
Net CI for 2 years = 10 + 10 + (10 x 10/100) = 21% So Net CI for 4 years = 21 + 21 +(21 x 21/100) 42 + 4.41 = 46.41% Hence net CI = 46.41% of Rs. 12000 = Rs. 5569.2
Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs
Interest = ₹10 lakhs
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