Question
Rs. 7550 is invested in scheme βAβ for a year at
simple interest of 30% p.a. The interest received from scheme βAβ is reinvested for 2 years in scheme βBβ which offers compound interest (compounded annually) of 30% p.a. What is the total amount received from scheme βBβ?Solution
Interest received from scheme βAβ = 7550 Γ (30/100) = Rs. 2265 Amount received from scheme βBβ = 2265 Γ {1 + (30/100)2} = 1.69 Γ 2265 = Rs. 3827.85
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