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    Question

    A certain principal amounts to Rs. 6300 in 6 years and

    Rs. 7100 in 8 years on simple interest. Calculate the interest earned when invested at 15% p.a. compound interest for 2 years.
    A Rs.1257.75 Correct Answer Incorrect Answer
    B Rs.1220.45 Correct Answer Incorrect Answer
    C Rs.1202.65 Correct Answer Incorrect Answer
    D Rs.1500.25 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Simple interest earned in two years = 7100 – 6300 = Rs. 800

    Simple interest earned in 1 year = Rs. 400

    So, sum invested = 6300 – 6 × 400 = 6300 – 2400 = Rs. 3900

    Desired interest = [(1.15)² – 1] × 3900 = 0.3225 × 3900 = Rs.1257.75

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