Question
The total amount in SIP 'X' after 3 years, invested at a
simple interest rate of 12% per annum, is Rs. 18,360. If an amount equal to 80% of the investment in SIP 'X' is invested for 2 years at a compound interest rate of 10% per annum, compounded annually, determine the interest earned.Solution
ATQ, Let the sum invested in SIP 'X' = Rs. '100a' Then, 100a × 3 × 12 ÷ 100 + 100× = 18360 Or, a = 18360 ÷ 136 = 135 So, 80% of sum invested in SIP 'X' = 13500 × 0.8 = Rs.10800 So, compound interest received = 10800 × {1 + (10/100)}2 - 10800 = 13068 - 10800 = Rs.2,268
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