Question
A person has ₹5000. He invests 40% of it in scheme A
at 8% per annum and the remaining in scheme B at 10% per annum. What is the total interest earned at the end of 2 years?Solution
Investment in scheme A = 40% of ₹5000 = ₹2000. Interest from scheme A = Principal * Rate * Time = 2000 * (8/100) * 2 = ₹320. Investment in scheme B = 60% of ₹5000 = ₹3000. Interest from scheme B = 3000 * (10/100) * 2 = ₹600. Total Interest = Interest from A + Interest from B = ₹320 + ₹600 = ₹920. Correct option: a) ₹920
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