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    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 25% p.a. Find the simple interest received.
    A 1455 Correct Answer Incorrect Answer
    B 1475 Correct Answer Incorrect Answer
    C 1465 Correct Answer Incorrect Answer
    D 1485 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 × 25 ÷ 100 = Rs. 1485

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