Question
An amount of Rs. 7200 is invested at 30% p.a. simple
interest for 5 years. The interest gained is then deposited at 10% p.a. compound interest for 2 years. Calculate the interest earned on the deposited amount.Solution
ATQ,
Interest received from the simple interest = (7200 × 30 × 5)/100 = Rs. 10,800 Interest received from the compound interest = 10,800(1 + 10/100)² – 10,800 = Rs. 2268
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