Question
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.
Answer: Option B
Answer: (b)A = P$(1 + R/100)^T$3840 = P$(1 + R/100)^4$ ....(i)3936 = P$(1 + R/100)^5$ ...(ii)Dividing equation (ii) by equation (i),$3936/3840 = 1 + R/100$$R/100 = 3936/3840$ - 1= ${3936 - 3840}/3840 = 96/3840$R = $96/3840 × 100$ = 2.5%Using Rule 7(i),Here, b - a = 5 - 4 = 1B = Rs.3,936, A = Rs.3,840R%= $(B/A - 1)$ × 100%= $(3936/3840 - 1)$ × 100%= $({3936 - 3840}/3840) × 100%$= $96/3840 × 100% = 10/4%$ = 2.5%
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Answer: (b)A = P$(1 + R/100)^T$3840 = P$(1 + R/100)^4$ ....(i)3936 = P$(1 + R/100)^5$ ...(ii)Dividing equation (ii) by equation (i),$3936/3840 = 1 + R/100$$R/100 = 3936/3840$ - 1= ${3936 - 3840}/3840 = 96/3840$R = $96/3840 × 100$ = 2.5%Using Rule 7(i),Here, b - a = 5 - 4 = 1B = Rs.3,936, A = Rs.3,840R%= $(B/A - 1)$ × 100%= $(3936/3840 - 1)$ × 100%= $({3936 - 3840}/3840) × 100%$= $96/3840 × 100% = 10/4%$ = 2.5%
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