Question
The interest received by investing Rs. 3000 for 2 years
at compound interest of 20% p.a., compounded annually, was re-invested for 3 years at simple interest of 28% p.a. Find the simple interest received.Solution
Compound Interest received = 3000 × {1 + (20/100)}2 – 3000 = 3000 × (12/10)2 – 3000 = 4320 – 3000 = Rs. 1320 Simple interest received = 1320 × 3 × 28 ÷ 100 = Rs. 1108.8
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