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The compound interest obtained from scheme C after 2 years at the rate of 25% per annum is Rs. 25312.5.
Let’s assume the initial investment of scheme C is ‘c’.
25312.5 = c of 125% of 125% - c
25312.5 = 1.5625c - c
25312.5 = 0.5625c
c = 45000
The initial investment of scheme A is 10% less than the initial investment of scheme C.
initial investment of scheme A = (100-10)% of 45000
= 90% of 45000
= 40500
The total initial investment of both of the schemes (A and B) together is Rs. 70500.
initial investment of scheme B = 70500-40500 = 30000
After 2 years, the ratio between the compound interest obtained from scheme A and B is 99:115 respectively. If the rate of interest in scheme B is 30%.
interest from scheme B after 2 years = 30000 of 130% of 130% - 30000
= 50700 - 30000
= 20700
interest from scheme A after 2 years = (20700/115)x99 = 17820
Let’s assume the rate of interest in scheme A is ‘r’.
17820 = 40500 of (100+r)% of (100+r)% - 40500
17820 = 40500 [(100+r)% of (100+r)% - 1]
0.44 = [(100+r)% of (100+r)% - 1]
(100+r)% of (100+r)% = 1.44
(100+r) (100+r) = 14400
So the rate of interest in scheme A = r = 20%
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