Question
A certain sum of money invested at R% p.a. simple
interest amounts to Rs. 17760 after 4 years and Rs. 22080 after 7 years. If the same sum of money is invested at (R + 3)% p.a. compound interest compounded annually, then the interest received at the end of 2 years will be:Solution
Simple interest earned in 3 years = 22080 – 17760 = Rs. 4320 Simple interest for 1 year = 4320/3 = Rs. 1440 Initial sum of money = 17760 – 1440 × 4 = Rs. 12000 So, R = 1440/12000 × 100 = 15% So, R + 3=> 15 Desired interest = [(1.15)2 – 1] × 12000 = Rs. 3870
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