Question
A sum when invested at simple interest of 12.5% p.a.
amounts to Rs. 10,000 after 2 years. If the same sum was invested at simple interest of 9% p.a. for 4 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: 10000 - P = (P X 12.5 X 2) ÷ 100 Or, 10000 - P = 0.25P So, 10000 = 1.25P So, P = (10000/1.25) = 8,000 So, required interest = (8000 X 9 X 4) ÷ 100 = Rs. 2,880
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