Question
A certain sum when invested at compound interest of 5%
p.a. amounts to Rs. 4410.25 in 2 years. Find the amount received when the same sum is invested at 15% p.a. simple interest for 3 years.Solution
Let the sum invested at compound interest be Rs. x
According to the question,
x(1 + 5/100) 2 = 4410.25
or, x = 4410.25/1.1025 = Rs. 4000
Required amount received = {(4000 × 15 × 3)/100} + 4000 = Rs. 5800
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