Question
"R" put Rs.(r + 5000) into a SIP that offered 12% annual
simple interest for four years. He also made a three-year investment of Rs. (r - 5000) in the same SIP. If the interest received from the two investments differs by Rs. (0.4r). Find out what 'r' is worth.Solution
ATQ, Simple interest = (Sum × rate of interest × time period in years) ÷ 100 So, interest earned from first investment = (r + 5000) × 12 × 4 ÷ 100 = Rs. (r + 5000) × (12/25) And, interest earned from second investment = (r - 5000) × 12 × 3 ÷ 100 = (r - 5000) × (9/25) So, (r + 5000) × (12/25) - (r - 5000) × (9/25) = 0.4r Or, 12 × (r + 5000) - 9 × (r - 5000) = 10r Or, 12r + 60000 - 9r + 45000 = 10r Or, 105000 = 7r So, r = 15000
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