Question
A man invested certain sum at simple interest of r% p.a.
such that it amounts to 120% of itself in 4 years. Find the interest earned when Rs. 2600 is invested at simple interest of r% p.a. for 3 years.Solution
Let the sum invested be Rs. ‘P’ Therefore, interest earned in 4 years = 1.2P – P = Rs. 0.2P ATQ; 0.2P = (P × r × 4) ÷ 100 Or, r = 20 ÷ 4 Or, r = 5 So, required interest earned = (2600 × 5 × 3) ÷ 100 = Rs. 390
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