Question
Rs. ’P’ invested at a rate of 8% p.a. compound
interest (compounded annually) amounts to Rs. 7231.68 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; 1.08 × 1.08 × P = 7231.68 Or, P = Rs. 6200 Desired interest = 0.08 × 7 × 6200 = Rs. 3472
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