saeed invested Rs. 400,000 for 10 years after which he received a lump sum amount of Rs. 900,000. If he earned 8.50% interest compounded quarterly during the last 5 year which of the following rate of interest , compounded quarterly, did he earn during the first five years
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Step-by-step explanation:
For ,
N=2years
P=Rs1,200
On interest being compounded for 2 years,
Amount=P(1+
100
R
)
N
1,452=1,200×(1+
100
R
)
2
1.21=(1+
100
R
)
2
Taking square root on both sides,
1.1=1+
100
R
=>R=10 %
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