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      Question

      A man invested certain sum at simple interest of r% p.a.

      such that it amounts to 124% of itself in 10 years. Find the interest earned when Rs. 10000 is invested at simple interest of r% p.a. for 3 years.
      A Rs. 700 Correct Answer Incorrect Answer
      B Rs. 730 Correct Answer Incorrect Answer
      C Rs. 720 Correct Answer Incorrect Answer
      D Rs. 710 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Let the sum invested be Rs. β€˜P’ Therefore, interest earned in 10 years = 1.24P – P = Rs. 0.24P ATQ; 0.24P = (P Γ— r Γ— 10) Γ· 100 Or, r = 24 Γ· 10 Or, r = 2.4 So, required interest earned = (10000 Γ— 2.4 Γ— 3) Γ· 100 = Rs. 720

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