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6. Compound Interest and Uniform Rate of Increase or Decrease
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Q16 of 52 Page 117

present price of a machine is ₹2p and if price of the machine decreases by 2r% in each year, the price of machine will be.

We know that after depreciation, the price of machine after n years


Where p = present price of machine, r% = rate of decrease in a year and n = number of years.


Given p = ₹2p and r% = 2r%


⇒ Price of machine after n years


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In case of compound interest

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At present the population of a village is p and if increase rate of population per year be 2r%, the population will be after n years

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A person deposited ₹100 in a bank and got the amount ₹121 for two years the rate of compound interest is

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Let us write true or false for the following statements

(i) The compound interest will be always less than simple interest for some money at fixed rate of interest for fixed time.


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Questions · 52
6. Compound Interest and Uniform Rate of Increase or Decrease
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