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Compound Interest Practice Test 6
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© examsnet.com
Question : 2
Total: 9
A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs 482 more if the interest was payable half-yearly than if it was payable annually. The sum is:
Rs 10,000
Rs 20,000
Rs 40,000
Rs 50,000
Validate
Solution:
If interest was payable annually,
then
A
=
P
(
1
+
20
100
)
2
......(i)
If interest was payable half yearly then
⇒
A
+
482
=
P
(
1
+
10
100
)
4
......(ii)
Subtracting equation (i) from (ii)
482
=
P
[
(
110
100
)
4
−
(
6
5
)
2
]
482
=
P
[
14641
10000
−
36
25
]
P = Rs 20, 000
© examsnet.com
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