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Compound Interest Practice Test 6
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© examsnet.com
Question : 6
Total: 9
An amount of money at compound interest grows up to Rs 3,840 in 4 years and up to Rs 3,936 in 5 years. Find the rate of interest.
2.5%
2%
3.5%
2.05%
Validate
Solution:
Amount of money at compound interest for 4 years = Rs 3,840
Amount of money at compound interest for 5 years = Rs 3,936
Rate of interest = R
Time = 1 year
A
=
P
(
1
+
R
100
)
t
⇒
3936
=
3840
(
1
+
R
100
)
1
R
=
96
×
100
3840
R
=
2.5
%
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