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If Rs.12,500 is invested at 12% p.a on compound interest for one year and 4 months,compounded annually,then the amount
received is:
Rs.14,650
Rs.14,560
Rs.15,460
Rs.16,450
- You invested Rs.12,500 at 12% per annum on compound interest.
- The investment period is 1 year and 4 months.
- Compound annually means interest is calculated once a year.
- First, calculate for the 1 year:
A=P(1+r)n=12500×(1+0.12)1=12500×1.12=14000
- For the remaining 4 months (1/3 of a year), calculate simple interest on Rs.14,000:
Simple Interest=P×r×t100=14000×12×13100=560
- Add simple interest to the amount after first year:
14000+560=14560
- Rs.14,560 is the final amount.
- Correct Answer: Option 2: Rs.14,560
.
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