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    Question

    A man invested a certain amount of sum at 10% per

    annum simple interest and earned an interest of Rs. 3000 after 5 years. If the same amount is invested at 25% per annum compound interest, compounded annually for two years then the interest would be:
    A Rs. 4625 Correct Answer Incorrect Answer
    B Rs. 5225 Correct Answer Incorrect Answer
    C Rs. 4641 Correct Answer Incorrect Answer
    D Rs. 4468 Correct Answer Incorrect Answer
    E Rs. 3375 Correct Answer Incorrect Answer

    Solution

    Let the certain sum of money be Rs. P
    So, P × 0.10 × 5 = 3000
    So, P = Rs. 6000
    Desired interest = [(1.25)2 – 1] × 6000 = Rs. 3375

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