Question
A certain sum when invested at compound interest of 10%
p.a. amounts to Rs. 6050 in 2 years. Find the amount received when the same sum is invested at 25% p.a. simple interest for 4 years.Solution
Let the sum invested at compound interest be Rs. x
According to the question,
x(1 + 10/100) 2 = 6050
or, x = 6050/1.21 = Rs. 5000
Required amount received = {(5000 × 25 × 4)/100} + 5000 = Rs. 10000
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