Question

    A man invested a certain amount of sum at 18% per

    annum simple interest and earned an interest of Rs. 2700 after 3 years. If the same amount is invested at 30% per annum compound interest, compounded annually for two years then the interest would be:
    A Rs. 4625 Correct Answer Incorrect Answer
    B Rs. 3450 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 × 0.18 × 3 = 2700
    So, P = Rs. 5000
    Desired interest = [(1.30)2 – 1] × 5000 = Rs. 3450

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