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QUESTION :
The simple interest on a certain someone of money at 10 % per annum is Rs. 6000 in 2 years
Find :
1. The Sum
2. The amount due at the end of 3 years at the same rate of interest compounded annually.
3. The compound Interest Earned in 3 years.
SOLUTION :
PART 1 :
We know that :
SI = { PTR } / 100
Where,
P is the principle amount.
T is the required time period.
R is the rate per annum.
Substituting these above values into the formula,
6000 = 20 P / 100
=> P / 5 = 6000
=> P = Rs. 30,000
PART 2 :
Now, we know that in Compound Interest compounded annually :
A = P ( 1 + r / 100 ) ^ t
Here ,
A is the amount.
P is the principle
R is the rate per annum.
Substituting the required values :
A = 30,000 × ( 11 / 10 ) ^ 3 = 30 × 1331 = Rs. 39930
PART 3 :
We know that Compound Interest = Amount - Principle
=> Rs. 39930 - Rs. 30000
=> Rs. 9930
ANSWER :
1. Rs 30,000
2. Rs. 39930
3. Rs. 9930