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Find the rate at which a sum of money wi...

Find the rate at which a sum of money will become four times the original amount in 2 years, if the interest is compounded half-yearly.

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To find the rate at which a sum of money will become four times the original amount in 2 years with interest compounded half-yearly, we can follow these steps: ### Step 1: Understand the problem We need to find the rate of interest (r) that will make the principal amount (P) grow to four times itself (4P) in 2 years when compounded half-yearly. ### Step 2: Identify the variables - Let the principal amount be \( P \). - After 2 years, the amount becomes \( 4P \). ...
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Knowledge Check

  • A sum of money becomes 1.331 times in 3 years as compound interest. The rate of interest is

    A
    `8%`
    B
    `7.5% `
    C
    `10% `
    D
    `50% `
  • The rate of simple interest at which a sum of money becomes three times in 25 years is :

    A
    6%
    B
    8%
    C
    5%
    D
    4%
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