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      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.
      A Rs.2200 Correct Answer Incorrect Answer
      B Rs.1250 Correct Answer Incorrect Answer
      C Rs.2268 Correct Answer Incorrect Answer
      D Rs.2650 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      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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