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


Manohara M K

Manohara M K

CA Foundation

6K+

31-Oct-20

41

Answers (19)

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


sai t

sai t

CA Foundation

300

31-Oct-20

sai t

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

I didn't get the a answer, can you please do that


Thread Starter

Manohara M K

Manohara M K

CA Foundation

6K+

31-Oct-20

Answer is approximately 14%


sai t

sai t

CA Foundation

300

31-Oct-20

sai t

Answer is approximately 14%

I am sorry answer is 44.2%


sai t

sai t

CA Foundation

300

31-Oct-20

sai t

I am sorry answer is 44.2%

Thank you


Thread Starter

Manohara M K

Manohara M K

CA Foundation

6K+

01-Nov-20

Thread Starter

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

Sriram Somayajula

Admin

01-Nov-20

sai t

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

Please share your working


Sriram Somayajula

Sriram Somayajula

Admin

01-Nov-20

Sriram Somayajula Admin

Please share your working

Sir below is working note

Attachments

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


sai t

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

Sriram Somayajula

Admin

01-Nov-20

Sriram Somayajula Admin

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

Sriram Somayajula

Admin

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

Sriram Somayajula

Admin

01-Nov-20

Sriram Somayajula Admin

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

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

Sriram Somayajula

Admin

01-Nov-20

Sriram Somayajula Admin

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

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

Sriram Somayajula

Admin

01-Nov-20

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