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    Question

    Rs. 7,500 is invested in scheme ‘A’ for a year at

    simple interest of 25% p.a. The interest received from scheme ‘A’ is reinvested for 2 years in scheme ‘B’ which offers compound interest (compounded annually) of 20% p.a. What is the total amount received from scheme ‘B’?
    A Rs. 2700 Correct Answer Incorrect Answer
    B Rs. 2000 Correct Answer Incorrect Answer
    C Rs. 2500 Correct Answer Incorrect Answer
    D Rs. 2750 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Interest received from scheme ‘A’ = 7500 × (25/100) = Rs. 1875 Amount received from scheme ‘B’ = 1875 × {1 + (20/100)2} = 1.44 × 1875 = Rs. 2700

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