Question
A person lent Rs. 40000 at 8% p.a. compound interest,
compounded annually for two years. After two years, the total amount earned by the person is again lent for 2 years at 25% p.a. simple interest. What is the total interest earned by the person in 4 years?Solution
ATQ, Amount earned by the person in 2 years = 40000 × (1.08)² = Rs. 46656 Compound interest earned by the person = 46656 – 40000 = Rs. 6656 Simple interest earned by the person = (46656 × 25 × 2)/100 = Rs. 23328 Total interest earned = 6656 + 23328 = Rs.29984
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