Question
The interest received by investing Rs. 2000 for 2 years
at compound interest of 20% p.a., compounded annually, was re-invested for 3 years at simple interest of 30% p.a. Find the simple interest received.Solution
Compound Interest received = 2000 × {1 + (20/100)}2 – 2000 = 2000 × (12/10)2 – 2000 = 2880 – 2000 = Rs. 880 Simple interest received = 880 × 3 × 30 ÷ 100 = Rs. 792
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