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      Question

      A man invested a certain amount of sum at 12.5% per

      annum simple interest and earned an interest of Rs.1800 after 2 years. If the same amount is invested at 20% per annum compound interest, compounded annually for two years, then find the interest.
      A Rs.1470 Correct Answer Incorrect Answer
      B Rs.3168 Correct Answer Incorrect Answer
      C Rs.1008 Correct Answer Incorrect Answer
      D Rs.4400 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Let the certain sum of money be Rs.P. So,  P x 0.125 x 2 = 1800 => P = Rs.7200 Desired interest = [(1.2)2 – 1] x 7200 = Rs.3168

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