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Certain money amounts Rs. 1950 at 5% p.a. after 6 years. How much will it amount at the
same rate of interest after 8 years?
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Certain money amounts Rs. 1950 at 5% p.a. after 6 years. How much will...
Solution:

Given: Principal amount (P) = Rs. 1950, Rate of interest (R) = 5% p.a., Time (n) = 6 years.

Calculation:

Step 1: Calculate the Simple Interest (SI) for 6 years.

Simple Interest (SI) = (P × R × n) / 100
SI = (1950 × 5 × 6) / 100 = Rs. 585

Step 2: Calculate the Amount (A) after 6 years.

Amount (A) = P + SI
A = 1950 + 585 = Rs. 2535

Step 3: Calculate the Amount (A) after 8 years.

We can use the formula A = P + SI to calculate the amount after 8 years, but it will be a lengthy process. Instead, we can use the concept of Compound Interest to simplify the calculation.

Since the rate of interest and the time period are the same for both 6 years and 8 years, we can assume that the interest earned in the first 6 years is reinvested for the remaining 2 years.

Step 4: Calculate the Compound Interest (CI) for 2 years.

CI = P × [(1 + R/100)^n - 1]
CI = 1950 × [(1 + 5/100)^2 - 1]
CI = 210.38 (approx.)

Step 5: Calculate the Amount (A) after 8 years.

Amount (A) = P + CI
A = 1950 + 210.38 = Rs. 2160.38 (approx.)

Therefore, the amount will be Rs. 2160.38 after 8 years at the same rate of interest.

Conclusion:

The amount will be Rs. 2160.38 after 8 years at the same rate of interest of 5% p.a. The calculation is based on the concept of Compound Interest.
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Certain money amounts Rs. 1950 at 5% p.a. after 6 years. How much will it amount at thesame rate of interest after 8 years?
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