A invested Rs. 20,000 for 2 years and 10 days at an annual compound interest rate of 11%. After this period, the amount received is reinvested for the same duration at the same rate but on simple interest. What is the approximate simple interest earned on this reinvestment?

Question

Accepted Answer

**Solution:**

1. Since 10 days is approximately one-twelfth of a year, we consider the total time as roughly 2 years for simplicity.

2. The compound interest rate for 2 years at 11% per annum is calculated as:
   - Total interest rate = 11% + 11% + (11% × 11%) / 100 = 22% + 1.21% = 23.21%

3. Calculate the compound interest on Rs. 20,000:
   $$	ext{CI} = \frac{23.21}{100} 	imes 20000 = Rs. 4642$$

4. The amount after 2 years is:
   $$20000 + 4642 = Rs. 24642$$

5. This amount is then invested for the same duration (2 years) at 11% simple interest:
   $$	ext{SI} = \frac{24642 	imes 2 	imes 11}{100} = Rs. 5421.24 \approx Rs. 5421$$

**Answer:** Rs. 5421

Answer

Answer

Answer