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.?Solution
Let the sum invested = Rs. Y According to the question, (Y Ă— 3 Ă— 12) Ă· 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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