Question
A sum of Rs. 6000 at a certain rate of interest in simple
interest for six years is amounted to Rs. 11400. If the same sum of money at same rate of interest compounded annually for two years, then what is the interest earned?Solution
Let R% be the rate of interest.
11400 - 6000 = (6000 * R * 6)/100
=> R = 5400/360 =
=> R = 15%
So, CI = 6000 * [(1 + 15/100) 2 - 1]
=> CI = Rs. 1935
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