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A certain sum of money amounts to rupees 752 in 20 years and rupees 7896 in 21 years at the rate of interest compound annually the rate of interest is a)9.5% b)8%c)10%d)none?
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A certain sum of money amounts to rupees 752 in 20 years and rupees 78...
Solution:

Given:

Principal (P) = ?

Amount after 20 years (A1) = Rs. 752

Amount after 21 years (A2) = Rs. 7896

Time (n) = 1 year

Rate of interest (r) = ?

Interest is compounded annually.

Formula:

Compound interest formula is given by:

A = P(1 + r/n)^(n*t)

Where,

A = Final Amount

P = Principal

r = rate of interest

n = number of times interest is compounded per year

t = time period in years

Calculation:

Let us assume that the rate of interest is r.

Amount after 20 years (A1) is given as:

A1 = P(1 + r/100)^20

Amount after 21 years (A2) is given as:

A2 = P(1 + r/100)^21

We can write A2/A1 = (1 + r/100)^1

Therefore,

A2/A1 = (1 + r/100)

We know that A1 = Rs. 752 and A2 = Rs. 7896.

Therefore,

A2/A1 = 7896/752 = 10.5

So, (1 + r/100) = 10.5

Hence, r = (10.5 - 1) * 100 = 950%.


Therefore, the rate of interest is 9.5%.

Answer:

The rate of interest is 9.5%.
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A certain sum of money amounts to rupees 752 in 20 years and rupees 7896 in 21 years at the rate of interest compound annually the rate of interest is a)9.5% b)8%c)10%d)none?
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A certain sum of money amounts to rupees 752 in 20 years and rupees 7896 in 21 years at the rate of interest compound annually the rate of interest is a)9.5% b)8%c)10%d)none? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A certain sum of money amounts to rupees 752 in 20 years and rupees 7896 in 21 years at the rate of interest compound annually the rate of interest is a)9.5% b)8%c)10%d)none? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A certain sum of money amounts to rupees 752 in 20 years and rupees 7896 in 21 years at the rate of interest compound annually the rate of interest is a)9.5% b)8%c)10%d)none?.
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