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A certain sum becomes 'k' times in 6 years at compound interest. In 24 years it will become how many times?1). 4k2). k43). k34). 3k |
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Answer» We know the formula for compound interest – CI = [P{1 + r/100}t – 1] Where, CI = Compound interest P = Principal R = Rate of interest T = TIME period According to the QUESTION, ⇒ kP – P = [P {1 + r/100}6 – 1] ⇒ kP = P {1 + r/100}6----- (1) ∴ Total sum BECOMES after 24 year ⇒ P {1 + r/100}24 = P [{1 + r/100}6]4 Using equation (1) = Pk4 |
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