Question
The interest earned when a sum is invested at simple
interest of 18% p.a., for 3 years, is Rs. 1350. 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.?Solution
Let the sum invested = Rs. Y According to the question, (Y Γ 3 Γ 18) Γ· 100 = 1350 So, Y = (1350/0.54) = 3025 So, required amount received = 3025(1 + 10/100)2 = 3025(11/10)2 = Rs. 3025
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