Compound Interest Practice Test 2

Question : 22 of 40

Marks: +1, -0

In what time will a production unit reach a target of 8 million from 6 million at

33 1/3%

p.a. compounded annually.

Solution:

8=6(1+{33 1/3}/100)^t

8/6=(1+100/{3×100})^t

4/3=(1+1/3)^t

4/3=(4/3)^t

⇒ Time taken = 1 year.

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