Question
A certain sum of money, when invested at a simple
interest rate of 12% per annum, grows to Rs. 3,850 over a period of 54 months. What will be the interest earned if the same sum is invested at a simple interest rate of 10% per annum for 1 year?Solution
Let the sum invested be Rs. 'P'. ATQ; 3850 - P = {(P X 12 X 54)/(12 X 100)} Or, 3850 - P = (27P/50) Or, (3850 - P) X 50 = 27P Or, 3850 X 50 - 50P = 27P Or, 77P = 192500 So, P = 2500 So, required interest = (10 X 2500 X 1) ÷ 100 = Rs. 250
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