Question
'V' invested Rs. 15,000 in Provident Fund 'P,' which
provides 20% compound interest for two years, compounded annually. He subsequently invested the amount received from Provident Fund 'P' in another Provident Fund 'Q,' offering a% simple interest for three years. Determine the value of 'a' if the amount received by 'V' from Provident Fund 'Q' is Rs. 29,376.Solution
ATQ, Amount received by V from Provident Fund 'P' = 15000 × (1 + 0.20)2 = Rs. 21,600 Amount received by V from Provident Fund 'Q' = 21600 + 21600 × 3 × (a/100) = 29376 648a = 7776 a = 12 So, the value of a = 12%
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