Question
If Vipul invests Rs.’a’ in scheme ‘M’ with a
compound interest rate of 20% p.a. for two years, and the total amount received from scheme ‘M’ is reinvested in scheme ‘N’ with a simple interest rate of 15% p.a. for four years, resulting in a total interest of Rs.1296 from scheme ‘N’. What is the total investment amount in scheme ‘N’?Solution
Equivalent interest rate = 20 + 20 + (20 × 20)/100 = 44% Total amount invested in scheme ‘N’ = a × (144/100) = (144a/100) According to the question, => (144a × 15 × 4)/(100 × 100) = 1296 => a = Rs. 1500 Therefore, total amount invested in scheme ‘N’ = (144/100) × 1500 = Rs.2160
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