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      Question

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

      annum simple interest and earned an interest of Rs 2700 after 6 years. If the same amount is invested at 20% 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. 1344 Correct Answer Incorrect Answer
      D Rs. 1100 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 × 6 = 2700
      So, P = Rs. 2500
      Desired interest = [(1.20)2 – 1] × 2500 = Rs. 1100

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