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      Question

      An amount of Rs. 3,600 grows to Rs. 4,680 in 6 years under

      simple interest at the rate of r% per annum. If Rs. 4,500 is invested at a rate of 1.8r% per annum for 4 years, what will be the interest earned?
      A Rs.1525 Correct Answer Incorrect Answer
      B Rs.1720 Correct Answer Incorrect Answer
      C Rs.1620 Correct Answer Incorrect Answer
      D Rs.1700 Correct Answer Incorrect Answer

      Solution

      ATQ,

      Interest earned in 6 years = 4680 – 3600 = Rs. 1,080

      Simple interest = Sum invested Γ— rate of interest Γ— time period in years Γ· 100

      So, 1080 = 3600 Γ— r Γ— 6 Γ· 100

      Or, r = 1080 Γ· (6 Γ— 36)

      So, r = 5

      So, new rate of interest = 1.8 Γ— 5 = 9% p.a.

      So, required interest = 4500 Γ— 9 Γ— 4 Γ· 100 = Rs. 1,620

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