A sum of money is lent at a certain rate of interest, if the principal is increased by 20%, then by how much the rate has to be reduced so that the same interest is obtained in the given years?
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Step-by-step explanation:
A sum of money is lent out at compound interest for two years at 20% per annum, compound interest being reckoned yearly. If the same sum of money was lent out at compound interest at the same rate per cent per annum, compound interest being reckoned half-yearly, it would have fetched Rs. 482 more by way of interest in two years.
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