Question 33
An amount of ₹10,000 becomes ₹14,641 is 2 years if the interest in compounded half-yearly. What is the rate of compound interest per annum?
Solution
Let us assume the rate of interest to be 2R% compounded half yearly.
$$10000\left(1+R\right)^{2\times\ 2}=14641$$
$$\left(1+R\right)^4=1.1^4$$
This gives R = 10% and 2R = 20% rate of interest.
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