Question
A man invested a certain amount of sum at 20% per annum
simple interest and earned an interest of Rs 2700 after 3 years. If the same amount is invested at 30% per annum compound interest, compounded annually for two years then the interest would be:Solution
Let the certain sum of money be Rs. P So, P × 0.20 × 3 = 2700 So, P = Rs. 4500 Desired interest = [(1.30)2 – 1] × 4500 = Rs. 3105
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