Question

At what rate percent compounded yearly will Rs. 4000 amount to Rs 4410 in 2 yrs?

Q: At what rate percent compounded yearly will Rs. 4000 amount to Rs 4410 in 2 yrs?

A = P[1+R/100]n 4410 = 4000 (1+ R/100)² 4410/4000 = (1+ R/100)² ⇒441/400 = (1+ R/100)² (21/20)² = (1+ R/100)² 21/20 = (1+ R/100) 21/20 - 1 = (R/100)⇒ 1/20= R/100 &there4; R = 5% p.a.

A 4.5% p.a

B 10% p.a

C 8% p.a

D 5% p.a

E None of these

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Question

At what rate percent compounded yearly will Rs. 4000 amount to Rs 4410 in 2 yrs?

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