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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%.
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?.
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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