Question
A certain sum when invested at compound interest of 12%
p.a. amounts to Rs. 6272 in 2 years. Find the amount received when the same sum is invested at 20% p.a. simple interest for 3 years.Solution
Let the sum invested at compound interest be Rs. x
According to the question,
x(1 + 12/100) 2 = 6272
or, x = 6272/1.2544 = Rs. 5000
Required amount received = {(5000 × 20 × 3)/100} + 5000 = Rs. 8000
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