Question

    The interest earned when a sum is invested at simple

    interest of 5% p.a., for 3 years, is Rs. 5280. What will be the total amount received after 2 years on investing the same sum at compound interest (compounded annually) of 10% interest p.a.?
    A Rs. 25328 Correct Answer Incorrect Answer
    B Rs. 23628 Correct Answer Incorrect Answer
    C Rs. 23328 Correct Answer Incorrect Answer
    D Rs. 23378 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the sum invested = Rs. Y According to the question, (Y × 3 × 5) ÷ 100 = 5280 So, Y = (5280/0.15) = 35200 So, required amount received = 35200(1 + 10/100)2 = 35200(27/25)2 = Rs. 23328

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