Question
Raju invests Rs. (p + 200) at a
simple interest rate of 25% per annum for a period of 6 years and earns a total interest of Rs. (2p − 300). What will be the total amount accrued if the same principal amount is invested at a compound interest rate of 50% per annum, compounded annually for 2 years?Solution
ATQ, {(p + 200) × 25 × 6}/100 = (2p – 300) Or, 3p + 600 = 4p – 600 Or, p = 1200 Therefore, sum invested at compound interest = Rs. (p + 200) = Rs. 1400 Required amount received = 1400(1 + 50/100)2 = Rs. 3150 = Rs. (3p – 450)
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