IIFT 5th Dec 2021 Slot 1

Question 20

Mr. Shyam invested a sum of Rs. 2000 through Kitocoin trading app available on his mobile. The invested amount appreciated after 3 years by 10% at the compound rate of appreciation. This appreciated amount is equal to the amount that is the result of 3 years depreciation by a certain compound rate of depreciation from Rs.3917. Find the difference between the compound rate of appreciation and depreciation:

Solution

It is given that,

$$2000\left(1.1\right)^3=3917\left(\frac{100-x}{100}\right)^3$$

$$\left(100-x\right)^3=679601$$

$$88^3=681472$$

Solving we get,

x = 12.xx

Difference = 2%

Answer is option C.


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