Question
A sum of Rs. 5000 amounts to Rs. 6655 at 10% p.a.,
interest being compounded yearly in a certain time. The simple interest earned (in Rs.) on the same sum for the same time and same rate is:Solution
Let desired time be ‘t’ years So, 5000(1 + 10/100)t = 6655 Or, (11/10)t = 6655 / 5000 = 1331/1000 = (11/10)3 Or, t = 3 Desired simple interest = 5000 × 0.10 × 3 = Rs. 1500
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