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A certain sum invested at 4% per annum compound interest, compounded half-yearly, amounts to Rs 7803 after the end of one year. The sum is?1). 70002). 72003). 75004). 7700 |
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Answer» We have R = 4 % per annum or 2 % per HALF-year T = 2 CYCLES of half YEARS. Hence we take t = 2. P = ? Amount = RS 7803 We have the formula for compound interest Amount $(= P{\left( {1 + \frac{R}{{100}}} \right)^T})$ Where P is the principal T is the time R is the rate of interest ⇒ 7803 = P ( 1 + 2/100)2 ⇒ 7803 = P × 1.02 × 1.02 ⇒ P = 7803/1.0404 ⇒ P = Rs 7500 |
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