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What is the compound interest on a sum of Rs. 13,000 at 15% p.a. in 2 years, if the interest is compounded 8-monthly?1. Rs. 4,4042. Rs. 4,3303. Rs. 4,0334. Rs. 4,303 |
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Answer» Correct Answer - Option 4 : Rs. 4,303 Given: Principal = Rs.13000 Rate of interest = 15% Effective rate of interest = 15 × 8/12 = 10% and 2 years = 24 months = 3 eight monthly Formula: Let P = Principal, R = rate of interest and N = time period Compound interest = P(1 + R/100)3 - P Calculation: ∴ Compound interest = 13000(1 + 10/100)3 - 13000 = Rs.4303 For compound interest calculated eight monthly R = (original rate) × 8/12 Time convert into months. |
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