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    Question

    A certain sum of money invested at R% p.a. simple

    interest amounts to Rs. 17760 after 4 years and Rs. 22080 after 7 years. If the same sum of money is invested at (R + 3) % p.a. compound interest compounded annually, then the interest received at the end of 2 years will be:
    A Rs. 4050 Correct Answer Incorrect Answer
    B Rs. 3870 Correct Answer Incorrect Answer
    C Rs. 4464 Correct Answer Incorrect Answer
    D Rs. 4645 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Simple interest earned in 3 years = 22080 – 17760 = Rs. 4320 Simple interest for 1 year = 4320/3 = Rs. 1440 Initial sum of money = 17760 – 1440 × 4 = Rs. 12000 So, R = 1440/12000 × 100 = 15% So, R + 3=> 15 Desired interest = [(1.15)2 – 1] × 12000 = Rs. 3870  

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