📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A certain sum amounts to Rs. 1800 in 3 years and to Rs.

    2592 in 5 years, when invested at R% p.a. compound interest, compounded annually. Find the amount received when Rs. 3000 is invested at (R – 10)% p.a. simple interest for 4 years.
    A Rs. 3960 Correct Answer Incorrect Answer
    B Rs. 4200 Correct Answer Incorrect Answer
    C Rs. 4320 Correct Answer Incorrect Answer
    D Rs. 3840 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let, the sum invested at compound interest be Rs. ‘P’ According to the question, {P(1 + R/100)⁵}/{P(1 + R/100)³} = 2592/1800 Or, (1 + R/100)² = 1.44 = (1 + 20/100)² Or, R = 20 Therefore, new rate of interest = 20 – 10 = 10% Required amount received at simple interest
    = {(3000 × 10 × 4)/100} + 3000
    = 1200 + 3000
    = Rs. 4200

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question