Question
A sum of Rs. 6000 amounts to Rs. 7260 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, 6000(1 + 10/100)t = 7260 Or, (11/10)t = 7260 / 6000 = 121/100 = (11/10)2 Or, t = 2 Desired simple interest = 6000 × 0.10 × 2 = Rs. 1200
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