Question

4. Venkat lends a sum P at r% compound interest,
compounded every moment for ten years. It becomes
"a" times P after ten years. What is the annual interest
rate? (Assume that a = e)
(A) 100% (B) 20% (C) 40% (D) 200%​

Answer 1

Answer:

b 20 is the answer

it may help u

Answer 2

Answer:

10 %

Step-by-step explanation:

we have

sum = P

rate of interest = r

time = 10 years

amount = aP (as per question)

a = e

which is compounded - every moment

for compounding every moment we have a separate formula which gives us

Amount = P × e ^rt

putting the values mentioned in our question we get

amount = Pe^10r

aP = Pe^10r

a = e^10r

given a = e

• therefore. e = e^10r

since base are same the exponents will be equal which gives us

1 = 10r

R= 0.1 = 0.1 × 100 ( since it needs to be converted into a percentage value)

= 10%

and hence the annual interest rate is 10%

if a = e^2

then we will have rate of interest = 20% (using the same comparison method)