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?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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