Question
A principal amount is invested at an annual simple
interest rate of R%, growing to Rs. 9,500 over 5 years and Rs. 13,100 over 9 years. Calculate the total interest earned if this principal is invested at an increased rate of (R + 7)% per annum for 2 years.Solution
Simple interest for 4 years = 13100 – 9500 = 3600 Simple interest for 1 year = 3600/4 = Rs. 900 Principal amount = 9500 – 5 × 900 = Rs. 5000 So, R = 900/50000 × 100 = 18% Desired interest = 5000 × 0.25 × 2 = Rs. 2500 Hence, option b.
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