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A sum of Rs.20,500 is invested at 20% rate of simple interest per annum for 4 years and the amount obtained is invested at 10% per annum compound interest for 2 years. Find the compound interest obtained.
7997
7479
7974
7749
7447
Sure, let's break down the solution:
- Step 1: Calculate Simple Interest (SI)
- Principle (P) = Rs. 20,500
- Rate (R) = 20% per annum
- Time (T) = 4 years
- Formula: SI = (P × R × T) / 100
- SI = (20,500 × 20 × 4) / 100 = Rs. 16,400
- Step 2: Calculate Total Amount after 4 years (Simple Interest)
- Total Amount = Principal + Simple Interest
- Total Amount = 20,500 + 16,400 = Rs. 36,900
- Step 3: Calculate Compound Interest (CI) on the Amount obtained after Simple Interest
- Principal for CI = Rs. 36,900
- Rate = 10% per annum
- Time = 2 years
- Formula for CI: CI = P × [(1 + R/100)^T - 1]
- CI = 36,900 × [(1 + 10/100)^2 - 1]
- CI = 36,900 × [(1.1)^2 - 1]
- CI = 36,900 × [1.21 - 1]
- CI = 36,900 × 0.21
- CI = Rs. 7,749
- Final Answer: The compound interest obtained is Rs. 7,749.
- Correct Option: Option 4 - 7749
By: Parvesh Mehta ProfileResourcesReport error
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