solve question no.8
Answers
Answer:
(d) 4%
Step-by-step explanation:
There seems to be an issue with the problem as worded, because "compound interest ... at simple interest" doesn't seem to make sense!
And if it's compounding, then how often is interest paid?
And if we assume it's compounding with annual payments, then the answer isn't among the options.
So.....
I think we need to suppose that the question is meant to just say "simple interest". At least this results in the answer being one of the options!
For simple interest, the amount after n years, at per annum rate R, starting with principal P, is
A = ( 1 + nR ) P
The amount after 4 years is
( 1 + 4R ) P = 1624
The amount after 6 years is
( 1 + 6R ) P = 1736
Dividing the second equation by the first equation, the P cancels:
( 1 + 6R ) / ( 1 + 4R) = 1736 / 1624
=> 1624 ( 1 + 6R ) = 1736 ( 1 + 4R )
=> 1624 + 9744R = 1736 + 6944R
=> 2800R = 112
=> R = 112 / 2800 = 0.04 = 4%