Question

money interest at 8% per annum simple interest amounts to 12122 in 2 years what will it amount to in 2 years 8 months at 9% rate of interest

Answer 1

Here it is given that money is compounded annually.

Interest rate is given as 8% simple.  

Final amount at the end of 2 years =12122 rs.

i.e. P(1+2(8)/100) = 12122

P = 10450

i.e. Amount invested originally was 10450 rupees.

With 10450 as principal, we have to find out the final amount in 2 years 8 months at 9% rate of interest.

Period = n = 2 yrs 8 months = 2 8/12 years = 8/3 years.

r = 9%

Hence simple interest = PNR/100 = 10450(9)(8/300) = 2508/-

Final amount = Principal + interest

= 10450 +2508 = 12958 rupees