📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    The interest received by investing Rs. 4500 for 2 years

    at compound interest of 20% p.a., compounded annually, was re-invested for 3 years at simple interest of 21% p.a. Find the simple interest received.
    A Rs. 1240.4 Correct Answer Incorrect Answer
    B Rs. 1207.4 Correct Answer Incorrect Answer
    C Rs. 1247.4 Correct Answer Incorrect Answer
    D Rs. 1147.4 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound Interest received = 4500 × {1 + (20/100)}2 – 4500 = 4500 × (12/10)2 – 4500 = 6480 – 4500 = Rs. 1980 Simple interest received = 1980 × 3 × 21 ÷ 100 = Rs. 1247.4

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question