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    Question

    A certain amount earns Rs. 2,400 as simple interest in 4

    years at 12% per annum. If the same amount is invested at 8% per annum for 2 years, what will be the interest earned?
    A Rs.800 Correct Answer Incorrect Answer
    B Rs.480 Correct Answer Incorrect Answer
    C Rs.650 Correct Answer Incorrect Answer
    D Rs.200 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the invested amount be Rs. 'P'

    Formula of simple interest = (P × R × T) ÷ 100

    ATQ;

    2400 = (P × 12 × 4) ÷ 100

    Or, P = 2400 ÷ 0.48

    Or, P = 5000

    Required interest = (5000 × 8 × 2) ÷ 100 = Rs. 800

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