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    Question

    The interest earned when a sum is invested at simple

    interest of 12% p.a., for 3 years, is Rs. 4500. 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. 15125 Correct Answer Incorrect Answer
    B Rs. 10125 Correct Answer Incorrect Answer
    C Rs. 15100 Correct Answer Incorrect Answer
    D Rs. 14125 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 × 12) ÷ 100 = 4500 So, Y = (4500/0.36) = 12500 So, required amount received = 12500(1 + 10/100)2 = 12500(11/10)2 = Rs. 15125

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