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    Question

    The interest received by investing Rs. 2500 for 2 years at compound interest of 20% p.a., compounded annually, was re-invested for 3 years at simple interest of 25% p.a. Find the simple interest received.

    A Rs. 805 Correct Answer Incorrect Answer
    B Rs. 820 Correct Answer Incorrect Answer
    C Rs. 825 Correct Answer Incorrect Answer
    D Rs. 827 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound Interest received = 2500 × {1 + (20/100)}2 – 2500 = 2500 × (12/10)2 – 2500 = 3600 – 2500 = Rs. 1100 Simple interest received = 1100 × 3 × 25 ÷ 100 = Rs. 825

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