Question
The interest earned when a sum is invested at simple
interest of 10% p.a., for 3 years, is Rs. 6000. What will be the total amount received after 2 years on investing the same sum at compound interest (compounded annually) of 8% interest p.a.?Solution
Let the sum invested = Rs. Y According to the question, (Y × 3 × 10) ÷ 100 = 6000 So, Y = (6000/0.3) = 20000 So, required amount received = 20000(1 + 8/100)2 = 20000(27/25)2 = Rs. 23328
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