# What will be the Amount? If

A certain amount of money earns Rs.540 as Simple Interest in 3 years. If it earns a Compound Interest of Rs.376.20 at the same rate of interest in 2 years, find the amount. (in rupees)

- 2100
- 1600
- 1800
- 2000

**Answer: (4) 2000**

**Explanation:-**

The simple interest of three years = Rs.540

Then, the simple interest of one year = 540/3 = Rs.180

Therefore, the simple interest of two years = 2 x 180 = Rs.360

The compound interest of two years = Rs. 376.20

The difference between compound interest and simple interest of two years = 376.20 – 360 = 16.20

If we take P = Rs.180 R = R% and time = 1 year

Then, 180 x R x 1 /100 = 16.20

18R = 162

R = 162/18

R = 9%

Thus, P x 9 x 3 /100 = 540

P = 2000

Hence, the answer is (4) Rs.2000