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?Solution
ATQ,
Interest earned in 6 years = 4680 – 3600 = Rs. 1,080
Simple interest = Sum invested × rate of interest × time period in years ÷ 100
So, 1080 = 3600 × r × 6 ÷ 100
Or, r = 1080 ÷ (6 × 36)
So, r = 5
So, new rate of interest = 1.8 × 5 = 9% p.a.
So, required interest = 4500 × 9 × 4 ÷ 100 = Rs. 1,620
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