InterviewSolution
Saved Bookmarks
| 1. |
If a sum of money compounded annually comes 1.96 times of itself in 2 years, then the rate of interest per annum is1). 42%2). 30%3). 14%4). 40% |
|
Answer» We KNOW that, Compounded amount, $(A\; = \;P{\left[ {1 + \FRAC{r}{{100}}} \right]^t})$ Where, P = Principal amount, r = % rate of interest, t = time in years Given, a sum of money compounded annually comes 1.96 times of itself in 2 years $(P{\left[ {1 + \frac{r}{{100}}} \right]^2} = 1.96\;P)$ $(\RIGHTARROW {\left[ {1 + \frac{r}{{100}}} \right]^2} = 1.96)$ $(\Rightarrow \frac{{100\; + \;r}}{{100}}\; = \;1.4)$ ⇒ 100 + r = 140 ⇒ r = 40 |
|