Question
Rs. 10000 is invested in scheme βAβ for a year at
simple interest of 29% p.a. The interest received from scheme βAβ is reinvested for 2 years in scheme βBβ which offers compound interest (compounded annually) of 50% p.a. What is the total amount received from scheme βBβ?Solution
Interest received from scheme βAβ = 10000 Γ (29/100) = Rs. 2900 Amount received from scheme βBβ = 2900 Γ {1 + (50/100)2} = 2.25 Γ 2900 = Rs. 6525
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