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# A sum of money compounded annually amounts to Rs.1375 in 5 years and Rs.1980 in 7 years. Find the annual rate of interest

A sum of money compounded annually amounts to Rs.1375 in 5 years and Rs.1980 in 7 years. Find the annual rate of interest

• Option 1)

12%

• Option 2)

20%

• Option 3)

11%

• Option 4)

10%

• Option 5)

15%

Views

Amount of 5 years = 1375 Rs.

Amount of  7 years = 1980 Rs.

Difference = 1980 -1375 = 605

Then$CI = P \left [ 1+\frac{r}{100} \right ]^{2}$

$605 = 1375 \left [ 1 + \frac{r}{100} \right ]^{2}$

R= 20 %

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