A sum of money invested at compound interest | vedclass

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Question

(C) Let $P$ be the principal and $R$ be the rate of interest per annum.The amount after $n$ years at compound interest is given by $A = P(1 + R/100)^n

Vedclass · Accepted Answer

$5$

Vedclass · Answer

(C) Let $P$ be the principal and $R$ be the rate of interest per annum.The amount after $n$ years at compound interest is given by $A = P(1 + R/100)^n$.For $3$ years: $P(1 + R/100)^3 = 800$  --- (Equation $1$)For $4$ years: $P(1 + R/100)^4 = 840$  --- (Equation $2$)Dividing Equation $2$ by Equation $1$:$\frac{P(1 + R/100)^4}{P(1 + R/100)^3} = \frac{840}{800}$$(1 + R/100) = 1.05$$R/100 = 1.05 - 1 = 0.05$$R = 0.05 	imes 100 = 5 \%$Thus,the rate of interest is $5 \%$ per annum.

$A$ sum of money invested at compound interest amounts to ₹ $800$ in $3$ years and to ₹ $840$ in $4$ years. The rate of interest (in $\%$) per annum is

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