Question
A sum becomes Rs. 5100 in 3 years and Rs. 6100 in 5
years at simple interest. What would be the interest if this sum is invested at 10% p.a. compound interest for 2 years?Solution
ATQ,
Simple interest earned in two years = 6100 – 5100 = Rs. 1000
Simple interest earned in 1 year = Rs. 500
So, sum invested = 5100 – 3 × 500 = 5100 – 1500 = Rs. 3600
Desired interest = [(1.10)² – 1] × 3600 = 0.21 × 3600 = Rs. 756
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