Question
Rs. ’P’ invested at a rate of 16% p.a. compound
interest (compounded annually) amounts to Rs. 9419.2 at the end of 2 years. Find the simple interest earned at the end of 7 years if the same amount is invested at the same rate.Solution
According to question; 1.16 × 1.16 × P = 9419.2 Or, P = Rs. 7000 Desired interest = 0.16 × 7 × 7000 = Rs. 7840
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