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# Doubt

If a sum of money itself tribels in 8.4 years so what will be the interest rate?? Manohara M K

CA Foundation

6K+

31-Oct-20

41

A=p(1+i) whole power n Apply above formulae you will get answer sai t

CA Foundation

300

31-Oct-20

sai t

A=p(1+i) whole power n Apply above formulae you will get answer Manohara M K

CA Foundation

6K+

31-Oct-20 sai t

CA Foundation

300

31-Oct-20

sai t

I am sorry answer is 44.2% sai t

CA Foundation

300

31-Oct-20

sai t

I am sorry answer is 44.2%

Thank you Manohara M K

CA Foundation

6K+

01-Nov-20

Manohara M K

Thank you

The question is not complete - whether it is simple interest or compound interest & if compounding what type of compounding - if nothing is mentioned we assume simple interest and if just compounding is mentioned we assume annual compounding. If it is simple interest answer can be easily found out . Let the sum be P Then 3p = P + (P x i% x 8.4/100) Solving for this p = 23.8%. If it is compound interest the 3P = P x ( 1+i) power 8.4 in which case answer is 14% Sriram Somayajula

01-Nov-20

sai t

Sir but when I apply compound interet I got interest as 44.2% Sriram Somayajula

01-Nov-20

Sir below is working note

Attachments

747f38ef-d669-4ef9-9bc6-33c4920759ee.jpg sai t

CA Foundation

300

01-Nov-20

sai t

Sir below is working note

The working is incorrect - power should be 8.4 and not 3 The equation is p x (1+i) power 8.4 = 3p Sriram Somayajula

01-Nov-20

The working is incorrect - power should be 8.4 and not 3 The equation is p x (1+i) power 8.4 = 3p

In the exam you will get 4 options, substitute the options in the equation and which ever is closest you can mark the answer - finding out 8.4 th root cannot be done on normal calculator Sriram Somayajula

01-Nov-20

In the exam you will get 4 options, substitute the options in the equation and which ever is closest you can mark the answer - finding out 8.4 th root cannot be done on normal calculator

Sir I have converted 8 years 4 months in non decimal digit sir Ie 8*4/12 =2.66 =~ 3 sir sai t

CA Foundation

300

01-Nov-20

sai t

Sir I have converted 8 years 4 months in non decimal digit sir Ie 8*4/12 =2.66 =~ 3 sir

that is 8 years plus (0.4 x 12 ) = 8 years 5 months Sriram Somayajula

01-Nov-20

that is 8 years plus (0.4 x 12 ) = 8 years 5 months

Sir I have a small doubt when to plus and why to multiply wit 12 sir?? sai t

CA Foundation

300

01-Nov-20

that is 8 years plus (0.4 x 12 ) = 8 years 5 months

4/12 sir?? sai t

CA Foundation

300

01-Nov-20

sai t

4/12 sir??

8.4 years = 8 years + 0.4 years i.e 8 years + 0.4 x 12months = 8 years 5 months Sriram Somayajula

01-Nov-20

8.4 years = 8 years + 0.4 years i.e 8 years + 0.4 x 12months = 8 years 5 months

Thank you sir Sir is this type of questions will be asked in exam ?? Because the power will be in decimals so it is impossible to get value using normal calculator sai t

CA Foundation

300

01-Nov-20

sai t

Thank you sir Sir is this type of questions will be asked in exam ?? Because the power will be in decimals so it is impossible to get value using normal calculator

If they ask, you must use substitution of available choices method to arrive at the answer Sriram Somayajula

01-Nov-20

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