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Question
A cash prize of ₹ 1,500 is given to the student standing first in examination of Business Mathematics by a person every year. Find out the sum that the person has to deposit to meet this expense. Rate of interest is 12% p.a.
Solution
Given a = ₹ 1,500
i = 12% = `12/100` = 0.12
P = `"a"/"i" = 1500/0.12` = ₹ 12,500
Hence the person has to deposit ₹ 12,500 to meet this expense.
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