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A man invested an amount at the rate of 10% p.a. on compound interest and after two years he again invested half of the initial amount. If man got Rs. 457.2 Rs. as interest after three years, find the amount received by man after three years, if he invested same amount on simple interest at rate of 15% p.a.?
1740 Rs.
1720 Rs.
1760 Rs.
1780 Rs.
None of these
- Let the initial investment be Rs. x.
- At 10% p.a. compound interest, after 2 years:
Amount = x × (1.1)² = x × 1.21
- After 2 years, he invests half the initial amount again, i.e., x/2.
- Total interest after 3 years is Rs. 457.2.
Let’s break it:
For first investment (x):
- For first 2 years: Compound interest = x × (1.21 – 1) = 0.21x
- For third year, x continues for 1 year more:
Amount after 2 years = x × 1.21
Interest for 3rd year = x × 1.21 × 10% = 0.121x
For the second investment (x/2):
- Invested at the end of 2nd year for 1 year at 10% CI:
Interest = (x/2) × 10% = 0.05x
Total interest:
0.21x + 0.121x + 0.05x = 0.381x = 457.2
So x = 457.2 / 0.381 = 1200
*Now, if Rs. 1200 is invested at 15% simple interest for 3 years:*
Interest = 1200 × 15% × 3 = 1200 × 0.45 = Rs. 540
Amount received = 1200 + 540 = Rs. 1740
The correct answer is:
Option:1, 1740 Rs.
By: Parvesh Mehta ProfileResourcesReport error
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