Question
Sunil invested Rs. ‘4x’ in scheme ‘A’ offering
simple interest of 20% p.a. and reinvested the interest earned from scheme ‘A’ at the end of 4 years in scheme ‘B’ offering compound interest of 20% p.a. compounded annually. If total amount received from scheme ‘B’ after 2 years is Rs. 1440, then find the value of ‘16x’.Solution
According to question; 1.44 × {0.20 × 4 × 4x} = 1440 Or, {0.25 × 4 × 5x} = 1000 Or, x = 312.5 So, 16x = 16 × 312.5 = 5000
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