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Discussion

Find the compound interest accrued on an amount of Rs.14,800 at 13.5% p.a at the end of two years.

  • A.Rs.4273
  • B.Rs.4613
  • C.Rs.4064
  • D.Rs.4266

Answer: D

CI = 14800{ [ 1 + 13.5/100]⊃2; - 1 } 

= 14800 { [1 + 27/200]⊃2; - 1 

= 14800 { 2 + 27/200}{27/200} 

= (74)[2 + 27/200](27) = 

1998[2 + 27/200] = 3996 + 269.73 = Rs. 4266

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