Question
'P' invests a certain amount at an annual compound
interest rate of 15% for two years, earning Rs. 3870 in interest. He then reinvests the total sum she received after two years at a 10% annual rate of simple interest for another three years. Calculate the simple interest 'P' earns from this second investment.Solution
ATQ, Let the sum = Rs. 'p' 3870 = p(1+ 15/100)2 – p 3870 = p × (529/400) – p 3870 = 129p/400 p = Rs.12000 Amount = 12000 + 3870 = Rs.15870 Required simple interest = 15870 × 10% × 3 = Rs.4761
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