Question
Rohit made an investment that yielded a simple interest
rate of r% per annum, allowing the principal to grow to 180% of its original amount in 5 years. If Rs. 2500 is invested at the same interest rate for a period of 2 years, what would be the total interest earned?Solution
Let the sum invested be Rs. ‘P’ Therefore, interest earned in 5 years = 1.8P – P = Rs. 0.8P ATQ; 0.8P = (P × r × 5) ÷ 100 Or, r = 80 ÷ 5 Or, r = 16 So, required interest earned = (2500 × 16 × 2) ÷ 100 = Rs. 800
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