Question
A man deposited Rs. 8500 in a bank offering compound
interest of 20% p.a. compounded annually for first 2.5 years and after that simple interest of 25% p.a. for rest of the time. If at the end of two and half years, he withdrew Rs. 9464; then amount received by him at the end of 4 years will be:Solution
Amount left after two and half years = 1.10 × 1.20 × 1.20 × 8500 – 9464 = 13464 – 9464 = Rs. 4000 Amount received at the end of four years = 4000 + 4000 × 0.25 × 1.5 = Rs. 5500
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