Practicing Success
The simple interest on a sum of ₹ 8,000 at a certain rate percent per annum for 3 years is ₹ 3,600. What will be the amount (in ₹) of the same sum after 2 years at the same rate, if the interest is compounded 8-monthly? |
11,239 10,450 10,580 10,648 |
10,648 |
Formula used :- Simple Interest = \(\frac{P × R × T }{100}\) 3600 = \(\frac{8000 × R × 3 }{100}\) R = 15% Interest is compounded 8 monthly . So, Effective rate = 15% × \(\frac{8 }{12}\) = 10% Amount = P$(1 \;+\; \frac{R}{100})^t$ = 8000 × [ 1 + \(\frac{10 }{100}\) ]³ = 8000 × [ \(\frac{11 }{10}\) ]³ = 8000 × \(\frac{11 }{10}\) × \(\frac{11 }{10}\) × \(\frac{11 }{10}\) = Rs. 10648
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