Question

Quantity I: A person invested Rs. 20,000 in a scheme offering 10% per annum simple interest. After two years, he reinvested the amount and interest earned at a compound interest rate of 8% per annum for another two years. Find the total amount after four years. Quantity II: A sum of Rs. 18,000 is invested in a scheme that offers 15% compound interest, compounded annually, for three years. Find the amount after three years.

Q: Answer-Quantity I: A person invested Rs. 20,000 in a scheme offering 10% per annum simple interest. After t...

Solution Quantity I Simple interest for two years 20000 10 2 Rs. 4000 Amount after two years 20000 4000 Rs. 24000 Now, this Rs. 24000 is invested at 8 compound interest for two years. Amount after two years at 8 compound interest 24000 1 81002 24000 1.082 24000 1.1664 Rs. 27993.6 Quantity II Amount after three years at 15 compound interest 18000 1 151003 18000 1.153 18000 1.520875 Rs. 27375.75 Answer E Quantity I Quantity II