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Question
The time taken for ₹ 1000 to become ₹ 1331 at 20% p.a, compounded annually is 3 years
Options
True
False
Solution
False
Explanation;
Hint:
Principal money = 1000
Rate of interest = 20%
Amount = 1331, applying in formula we get
A = `(1 + "r"/100)^"n"`
∴ 1331 = `1000(1 + 20/100)^"n"`
`1331/1000 = (1 + 1/5)^"n"`
`1331/1000 = (6/5)^"n"`
∴ n ≠ 3
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