Question

    If Bhavya decides to reinvest the total interest earned

    from Scheme D in a new scheme offering compound interest at the rate of 12% per annum for 2 years, and Anika decides to reinvest the amount she saved (Rs. 8,000) in a scheme offering 10% simple interest per annum for 4 years, what will be the difference in the amounts received by Bhavya and Anika at the end of their respective investment periods? Anika and Bhavya invested the same amount, Rs. (P), in two different schemes, C and D, respectively, for 2 years. Scheme C offers a 15% simple rate of interest, while Scheme D offers a 15% annual compound rate of interest. The difference between their interest amounts is Rs. 4050. Out of the total interest received by Anika, she spent (Q)% on travel, 30% on electronics, 20% on home decor, and the remaining Rs. 8000 she saved. From the total amount Anika spent on electronics, she spent Rs. (R) on a new laptop. With the remaining amount, she bought a smartphone at a 25% discount, which was marked Rs. 4000.
    A Rs. 51,515 Correct Answer Incorrect Answer
    B Rs. 62,028 Correct Answer Incorrect Answer
    C Rs. 52,514 Correct Answer Incorrect Answer
    D Rs. 63,000 Correct Answer Incorrect Answer
    E Rs. 61,618 Correct Answer Incorrect Answer

    Solution

    Total interest earned by Bhavya from Scheme D = Rs. 58,050 Bhavya reinvests Rs. 31,252.5 at 12% compound interest for 2 years. Amount Bhavya receives after 2 years: = Rs. 58,050 × (1 + 12/100)² = Rs. 58,050 × 112/100 ×112/100 = Rs. 72,817.92 Anika reinvests Rs. 8,000 at 10% simple interest for 4 years. Interest earned by Anika: = Rs. 8,000 × 10/100 × 4 = Rs. 3,200 Total amount Anika receives after 4 years: = Rs. 8,000 + Rs. 3,200 = Rs. 11,200 Difference in amounts received by Bhavya and Anika: = Rs. 72,817.92 - Rs. 11,200 = Rs. 61,617.92 Answer: e) Rs. 61,618

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