Question
A man invested a certain amount of sum at 20% per annum
simple interest and earned an interest of Rs 3500 after 4 years. If the same amount is invested at 24% per annum compound interest, compounded annually for two years then the interest would be:Solution
Let the certain sum of money be Rs. P So, P × 0.20 × 4 = 3500 So, P = Rs. 4375 Desired interest = [(1.24)2 – 1] × 4375 = Rs. 2352
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