Question
A sum when invested at simple interest of 4% p.a.
amounts to Rs. 35,000 after 10 years. If the same sum was invested at simple interest of 6% 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: 35000 - P = (P X 4 X 10) ÷ 100 Or, 35000 - P = 0.4P So, 35000 = 1.4P So, P = (35000/1.4) = 25,000 So, required interest = (25000 X 6 X 5) ÷ 100 = Rs. 7,500
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