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A sum of Rs. 10,000 is invested for a term of 2½ years at an interest rate of 8% compounded annually.…

For the two full years the amount is \(10000\times(1.08)^2=11664\). For the remaining half year simple interest at half the annual rate is applied, giving…

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A sum of Rs. 10,000 is invested for a term of 2½ years at an interest rate of 8% compounded annually. The amount on maturity will be :

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Correct answer C

For the two full years the amount is 10000×(1.08)2=1166410000\times(1.08)^2=11664. For the remaining half year simple interest at half the annual rate is applied, giving 11664×1.04=12130.5611664\times1.04=12130.56. Hence Rs 12130.56.

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