Question
A certain sum amounts to Rs. 2400 in 4 years and to Rs.
3456 in 6 years, when invested at R% p.a. compound interest, compounded annually. Find the amount received when Rs. 2000 is invested at (R – 5)% p.a. simple interest for 3 years.Solution
Let, the sum invested at compound interest be Rs. ‘P’ According to the question, {P(1 + R/100)⁶}/{P(1 + R/100)⁴} = 3456/2400 Or, (1 + R/100)² = 1.44 = (1 + 20/100)² Or, R = 20 Therefore, new rate of interest = 20 – 5 = 15% Required amount received at simple interest
= {(2000 × 15 × 3)/100} + 2000
= 900 + 2000
= Rs. 2900
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