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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 5000 after 2 years. If the same amount is invested at 24% per annum compound interest, compounded annually for two years then the interest would be:
    A Rs. 46250 Correct Answer Incorrect Answer
    B Rs. 34500 Correct Answer Incorrect Answer
    C Rs. 13440 Correct Answer Incorrect Answer
    D Rs. 23205 Correct Answer Incorrect Answer
    E Rs. 33750 Correct Answer Incorrect Answer

    Solution

    Let the certain sum of money be Rs. P
    So, P × 0.10 × 2 = 5000
    So, P = Rs. 25000
    Desired interest = [(1.24)2 – 1] × 25000 = Rs. 13440

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