New Enroll in RBI Grade B New Batch - Starts on May 21

    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.
    A Rs. 790 Correct Answer Incorrect Answer
    B Rs. 793 Correct Answer Incorrect Answer
    C Rs. 794 Correct Answer Incorrect Answer
    D Rs. 792 Correct Answer Incorrect Answer

    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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