Question

    Raju invested a certain sum at

    25% p.a. compound interest, compounded annually, and earned an interest of Rs. 2925 in 2 years. What will be the interest when the same amount is invested at 20% p.a. simple interest for three years?
    A Rs.8320 Correct Answer Incorrect Answer
    B Rs.7320 Correct Answer Incorrect Answer
    C Rs.8520 Correct Answer Incorrect Answer
    D Rs.8300 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let, the sum invested be Rs. x According to the question, x(1 + 0.25)2 – x = 2925 Or, 1.5625x – x = 2925 Or, x = 2925/0.5625 = Rs. 5200 Therefore, Required amount = (5200 × 20 × 3)/100 + 5200 = Rs.8320

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