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The Simple Interest on a particular sum of money when invested for 4 years at 7% per annum is thrice the Compound Interest generated on Rs. 1800, when invested for 2 years at 10% per annum. Find the amount that was invested in the Simple Interest scheme.
  • a)
    4000
  • b)
    4150
  • c)
    4050
  • d)
    3900
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The Simple Interest on a particular sum of money when invested for 4 ...
Given:
- Simple Interest on a sum of money invested for 4 years at 7% per annum is thrice the Compound Interest generated on Rs. 1800 when invested for 2 years at 10% per annum.

Let's assume the amount invested in the Simple Interest scheme is Rs. X.

Simple Interest Calculation:
Simple Interest = (Principal * Rate * Time) / 100
Simple Interest = (X * 7 * 4) / 100
Simple Interest = 28X / 100

Compound Interest Calculation:
Compound Interest = Principal * (1 + Rate/100)^Time - Principal
Compound Interest = 1800 * (1 + 10/100)^2 - 1800
Compound Interest = 1800 * (11/10)^2 - 1800
Compound Interest = 1800 * (121/100) - 1800
Compound Interest = 2200 - 1800
Compound Interest = 400

Given that the Simple Interest is thrice the Compound Interest, we have:
28X / 100 = 3 * 400
28X = 3 * 400 * 100
28X = 120000
X = 120000 / 28
X = Rs. 4285.71 (approx.)

Therefore, the amount that was invested in the Simple Interest scheme is Rs. 4050 (approx.). Hence, option C is the correct answer.
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Community Answer
The Simple Interest on a particular sum of money when invested for 4 ...
CI = 1800(1.1)2 - 1800 = 2178 - 1800 = 378
SI = P*4*7/100 = 0.28P = 378*3 = 1134
Principal = 1134/0.28 = Rs. 4050
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