Question
A man invested a certain amount of sum at 15% per annum
simple interest and earned an interest of Rs.2100 after 2 years. If the same amount is invested at 10% per annum compound interest, compounded annually for two years, then find the interest.Solution
Let the certain sum of money be Rs.P. So, P x 0.15 x 2 = 2100 => P = Rs.7000 Desired interest = [(1.1)2 – 1] x 7000 = Rs.1470
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