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At what rate of compound interest per annum will a sum of Rs. 5678 become Rs. 7512.5 in 4 years?

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At what rate of compound interest per annum will a sum of Rs. 5678 become Rs. 7512.5 in 4 years?
posted Mar 6, 2017 by anonymous

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1 Answer

+1 vote

7.25%
7512.5 = 5678 * (1 + x)^4
5712.5 / 5678 = (1 + x)^4 = 1.323
LOG(1 + x) = LOG(1.323) / 4
10^LOG(1 + x) = 10^( LOG(1.323) / 4)
1 + x = 10^( LOG(1.323) / 4) = 1.0725
x = 7.25%

answer Mar 7, 2017 by Jcm
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