Question

    A sum is invested at 12% p.a at simple interest for 5

    years. The obtained amount is invested for 2 years at 20% compounded annually. The interest obtained is1056.2. Find the approximate sum invested at simple interest.
    A 2500 Correct Answer Incorrect Answer
    B 1750.7 Correct Answer Incorrect Answer
    C 1500 Correct Answer Incorrect Answer
    D 1325.9 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, Let the principal P be invested at 12% simple interest for 5 years. Amount after 5 years = 1.6p. This amount is then invested at 20% compound interest for 2 years. Final amount = 1.6p×1.44 = 2.304p. Interest obtained = 2.304p−1.6P = 0.704p. Given interest = 0.704p=1056.2, So p = 1056.2/0.704 ≈1500.

    Practice Next
    More Simple and compound interest Questions
    ask-question