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A sum of money is lent at 20% per annum compounded half-yearly. If it amounts to ₹14,520 after one year, the sum lent is

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A sum of money is lent at 20% per annum compounded half-yearly. If it amounts to ₹14,520 after one year, the sum lent is

  • A₹10,000
  • B₹12,000
  • C₹11,000
  • D₹13,000
Correct answer: B

Explanation

The rate is 10% per half-year for 2 periods, so P × 1.1² = 14,520 gives P = 14,520/1.21 = ₹12,000.

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