Question
A certain sum of money invested at R% p.a. simple
interest amounts to Rs. 8288 after 4 years and Rs. 10304 after 7 years. If the same sum of money is invested at (R + 8)% p.a. compound interest compounded annually, then the interest received at the end of 2 years will be:Solution
Simple interest earned in 3 years = 10304 – 8288 = Rs. 2016 Simple interest for 1 year = 2016/3 = Rs. 672 Initial sum of money = 8288 – 672 × 4 = Rs. 5600 So, R = 672/5600 × 100 = 12% So, R + 8 => 20 Desired interest = [(1.20)2 – 1] × 5600 = Rs. 2464
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