Question
By investing Rs. 6,000 for 'a' years at an annual
compound interest rate of 15%, the interest gained amounted to Rs. 1,935. Determine the simple interest earned when Rs. 6,000 is invested at an annual interest rate of 15% for the same 'a' years.Solution
ATQ, 1935 = 6000 × {(1.15)a – 1} Or, {(1.15)a – 1} = 0.3225 Or, (1.15)a = 1.3225 = (1.15)2 Or, a = 2 Required simple interest = {(6000 × 15 × 2)/100} = Rs.1,800
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