New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Rs. 5500 is invested in scheme ‘A’ for a year at

    simple interest of 30% p.a. The interest received from scheme ‘A’ is reinvested for 2 years in scheme ‘B’ which offers compound interest (compounded annually) of 30% p.a. What is the total amount received from scheme ‘B’?
    A Rs. 2488.5 Correct Answer Incorrect Answer
    B Rs. 2988.5 Correct Answer Incorrect Answer
    C Rs. 2788.5 Correct Answer Incorrect Answer
    D Rs. 2188.5 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Interest received from scheme ‘A’ = 5500 × (30/100) = Rs. 1650 Amount received from scheme ‘B’ = 1650 × {1 + (30/100)2} = 1.69 × 1650 = Rs. 2788.5

    Practice Next

    Relevant for Exams: