Question
When invested at x% p.a. simple interest for 16 years,
Rs. 'p' becomes five times its own value. Determine the value of "p" if Rs. (p + 240) invested at (x + 25)% p.a. compound interest, compounded annually for two years, becomes Rs. 6480.Solution
ATQ, (p × 16 × x)/100 = 5p – p Or, x = 400/16 = 25 Therefore, (x + 25)% = 50% Or, (p + 240)(1 + 50/100)2 = 6480 Or, 2.25(p + 240) = 6480 Or, p + 240 = 2880 Or, p = 2640
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