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      Question

      A certain sum amounts to Rs. 4900 in 2 years and to Rs.

      5929 in 3 years, when invested at R% p.a. compound interest, compounded annually. Find the amount received when Rs. 3500 is invested at (R – 10)% p.a. simple interest for 2 years.
      A Rs. 4200 Correct Answer Incorrect Answer
      B Rs. 4270 Correct Answer Incorrect Answer
      C Rs. 2900 Correct Answer Incorrect Answer
      D Rs. 5600 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)³}/{P(1 + R/100)²} = 5929/4900 Or, (1 + R/100) = 1.21 = (1 + 21/100) Or, R = 21 Therefore, new rate of interest = 21 – 10 = 11% Required amount received at simple interest
      = {(3500 × 11 × 2)/100} + 3500
      = 770 + 3500
      = Rs. 4270

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