Question
A certain sum when invested at compound interest of 6% p.a.
amounts to Rs. 5618.40 in 2 years. Find the amount received when the same sum is invested at 18% p.a. simple interest for 3 years.Solution
Let the sum invested at compound interest be Rs. x
According to the question,
x(1 + 6/100) 2 = 5618.4
or, x = 5618.4/1.1236 = Rs. 5000
Required amount received = {(5000 × 18 × 3)/100} + 5000 = Rs. 7700
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