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At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?1). 22 percent2). 11 percent3). 7 percent4). 15 percent |
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Answer» A = P[1 + (R/100)]n, where A = AMOUNT after ADDING compound Interest, R = rate of interest and n = NUMBER of years ⇒ (111/100)2 = [1 + (R/100)]2 ⇒ [1 + (11/100)]2 = [1 + (R/100)]2 ⇒ R = 11% ∴ Rate of compound interest = 11% |
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