Question
A principal of Rs. 'x' is invested at an annual compound
interest rate of 30%, compounded yearly, and grows to Rs. 2535 after 2 years. Calculate the simple interest earned when an additional Rs. 140 is added to the principal 'x' and the total amount is then invested at an annual simple interest rate of 15% for a period of 5 years.Solution
According to the question, {x(1 + 30/100)2} = 2535 Or, x = 2535/1.69 = 1500 Sum invested at simple interest = (x + 140) = Rs. 1640 Therefore, simple interest received = (1640 × 15 × 5)/100 = Rs. 1230 Hence, option d.
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