Question
A deposited Rs. 9800 at 20% per annum compound interest
in scheme A for 2 years. After 2 years, he deposited total amount at 18% simple interest per annum in another scheme B. Find the interest earned from scheme B after 18 years.Solution
Total amount earned from scheme A = 9800 × (1.20)2 = Rs. 14112 Interest earned from scheme B = (14112 × 18 × 4)/100 = Rs. 7620.48
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