Question

    Anoop invested a sum at a simple interest rate of 8% per

    annum, and it grew to Rs.1,850 in 6 years. If the same sum is invested at a compound interest rate of 20% per annum for 2 years, what would be the amount received after 2 years?
    A Rs.1,800 Correct Answer Incorrect Answer
    B Rs.1,900 Correct Answer Incorrect Answer
    C Rs.1,850 Correct Answer Incorrect Answer
    D Rs.1,500 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Simple interest = (sum × rate of interest × time period in year) ÷ 100 Let the sum invested be Rs. 'S' So, 1850 - S = (S × 8 × 6) ÷ 100 Or, 1850 - S = 0.48S Or, 1850 = 1.48S So, S = 1250 Amount received from second investment = Sum × {1 + (rate/100)}Time period So, required amount = 1250 × {1 + (20/100)}2  = 1.44 × 1250  = Rs. 1,800

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