Question
A sum when invested at simple interest of 10% p.a.
amounts to Rs. 26,000 after 3 years. If the same sum was invested at simple interest of 8% p.a. for 5 years, then what would be the interest earned?Solution
Let the sum invested be Rs. 'P' Simple interest = (Sum X Rate of interest X time period in years) ÷ 100 ATQ: 26000 - P = (P X 10 X 3) ÷ 100 Or, 26000 - P = 0.3P So, 26000 = 1.3P So, P = (26000/1.3) = 20,000 So, required interest = (20000 X 8 X 5) ÷ 100 = Rs. 8,000
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