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What Sum of Money Will Amount to Rs 8,073 in 2 Years at Compound Interest If the Rates of Interest for the Successive Years Are 15% and 17%?

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Question

What sum of money will amount to Rs 8,073 in 2 years at compound interest if the rates of interest for the successive years are 15% and 17%?

Sum
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Solution

Here P= ? ; t = 2 years ; r = 15% and 17% successively; A= Rs 8,073 

`"A" = "P" (1 + "r"/100)^"n"`

Rs 8073 = P`(1 + 15/100)(1 + 17/100)`

Rs 8,073= P x 1.15 x 1.17

Rs 8,073 = 1.3455 P

P = Rs `8073/13455` 

P = Rs 6,000 

Hence, the sum of money is Rs 6,000

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