New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    Mark invested Rs 15,000 in a scheme at simple interest

    20% per annum. After three years he withdrew the principal amount plus invested the entire amount in another scheme for two years, which earned him compound interest 12% per annum. What would be the interest earned by Mark at the end of five years?
    A Rs 15,150.6 Correct Answer Incorrect Answer
    B Rs 15,015.6 Correct Answer Incorrect Answer
    C Rs 15,005.6 Correct Answer Incorrect Answer
    D Rs 15,105.6 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    S.I = (15000× 20× 3)/100 = Rs 9,000 Amount = 15,000 + 9,000 = Rs 24,000 A = P (1 + r/100)n A = 24,000 (1 + 12/100)2 A = 24,000 (28/25)2 A = Rs 30,105.6 C.I = A – P = 30,105.6 – 24,000 = Rs 6,105.6 After five years, Total interest = Rs (9,000 + 6,105.6) = Rs 15,105.6

    Practice Next

    Relevant for Exams: