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14. Compound Interest
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Q18 of 89 Page 14

What will Rs. 125000 amount to at the rate of 6%, if the interest is calculated after every four months?

Principal = Rs. 125000


Time = 1 year


Rate = 6% per annum


∵ Interest is compounded after 4 months, So Rate of interest will be counted as 6/3 = 2% and time will be 12/4 = 3


We know that,




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Find the compound interest at the rate of 5% for three years on that principal which in three years at the rate of 5% per annum gives Rs. 12000 as simple interest.

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Questions · 89
14. Compound Interest
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