New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    M invested Rs. 27,000 in two Mutual Funds, 'Axis Funds'

    and 'ICICI Funds,' for 5 years and 2 years, respectively. 'Axis Funds' provide simple interest at 20% per annum, while 'ICICI Funds' offer compound interest compounded annually at 30% per annum. Determine the amount invested in 'ICICI Funds' if the interest earned from 'Axis Funds' exceeds that from 'ICICI Funds' by Rs. 1,650.
    A 45000 Correct Answer Incorrect Answer
    B 22000 Correct Answer Incorrect Answer
    C 18000 Correct Answer Incorrect Answer
    D 15000 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Let the sum invested in Mutual fund ‘ICICI’ be Rs. ‘a’ Sum invested in Mutual fund ‘Axis’ = Rs. (27000 – a) Simple interest earned from Mutual fund ‘Axis’ = {(27000 – a) × 20 × 5}/100 = Rs. (27000 – a) And, compound interest earned from Mutual fund ‘ICICI’ = a × [{1 + (30/100)}2 – 1] = Rs. ‘0.69a’ According to question: 27000 – a – 0.69a = 1650 Or, 1.69a = 25350 Or, a = 15000

    Practice Next

    Relevant for Exams: