Question
Rs. ’P’ invested at a rate of 10% p.a. compound
interest (compounded annually) amounts to Rs. 7744 at the end of 2 years. Find the simple interest earned at the end of 4 years if the same amount is invested at the same rate.Solution
According to question; 1.10 × 1.10 × P = 7744 Or, P = Rs. 6400 Desired interest = 0.1 × 4 × 6400 = Rs. 2560
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