Arithmetic Ability
Compound Interest

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Q.

A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.482 more, if the interest was payable half yearly than if it was payable annually . The sum is

View Answer

Correct choice: B

Explanation:

Let sum=Rs.x C.I. when compounded half yearly = [x(1+10/100)4−x]=4641/10000 C.I. when compounded annually =[x(20/100)2−x]=11/25 (4641/10000)x−(11/25)x=482 => x=20000
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