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      Question

      A man invested a certain amount of sum at 12.5% per

      annum simple interest and earned an interest of Rs.2400 after 3 years. If the same amount is invested at 20% per annum compound interest, compounded annually for two years, then find the interest.
      A Rs.1512 Correct Answer Incorrect Answer
      B Rs.2816 Correct Answer Incorrect Answer
      C Rs.2464 Correct Answer Incorrect Answer
      D Rs.1760 Correct Answer Incorrect Answer

      Solution

      Let the certain sum of money be Rs.P. So,ย ย P x 0.125 x 3 = 2400 => P = Rs.6400 Desired interest = [(1.2)2ย โ€“ 1] x 5600 = Rs.2816

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