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harina [27]
3 years ago
7

Jays credit card had an apt of 16.53% all of last year, and interest was compounded periodically throughout the year. Which of t

hese statements accurately describes the effective interest rate of jays credit card last year?
Mathematics
1 answer:
oee [108]3 years ago
3 0
The formula is
Effective interest rate = (1 + i/n)^n - 1
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Mashutka [201]

<u>ANSWER: </u>

Rate per annum at which CI will amount from RS 2000 to RS 2315.35 in 3 years is 5%

<u>SOLUTION: </u>

Given,  

P = RS 2000

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T = 3 years

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We know that,  

When interest is compound Annually:

Amount $=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{n}$

Where p = principal amount

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n = number of years

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$1+\frac{R}{100}=\sqrt[3]{1.157}$

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$\frac{R}{100}=1.05-1$

$\frac{R}{100}=0.05$

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Hence, rate per annum is 5 percent.

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