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?
    A Rs 1835 Correct Answer Incorrect Answer
    B Rs 1995 Correct Answer Incorrect Answer
    C Rs 1785 Correct Answer Incorrect Answer
    D Rs 1695 Correct Answer Incorrect Answer
    E Rs 1935 Correct Answer Incorrect Answer

    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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