Question
Praveen earned an interest of Rs. 10,400 by investing a
certain sum with bank C under scheme III for two years. How much interest he would have earned had he invested the same sum for the same duration with the same bank under scheme II.Solution
Under scheme III: SI = 10400 = `(P xx R xx T)/100 = (P xx 6.5 xx 2)/100` `or P = Rs. 80000` Under scheme II: Net CI % of 2 years = 5 + 5 + `(5xx5)/100` = 10.25% So net CI = `80000 xx 10.25% = Rs. 8200`
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