Compound Interest Practice Test 3

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Question : 17 of 40

Marks: +1, -0

In what time does Rs 46,875 amount to Rs 59,049 at 8% compounded annually?

3 years
2 years
2.5 years
4 years
Cannot be determined

Solution:

Amount

= P(1+8/100)^t

59049/46875=(1+8/100)^t

19683/15625=(27/25)^t

(27/25)^3=(27/25)^t

Time = 3 years.

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