Compound Interest Practice Test 4

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Question : 37 of 40

Marks: +1, -0

A tree increases annually by

1 /5

of its height. By how much will it increase after 2 years if at its present height is 100 cm?

144 cm
180 cm
125 cm
210 cm
None of these

Solution:

Rate of increase

=1/5×100=20%

Height after 2 years

= 100(1+20/100)^2

= 144 cm. tall

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