Question
Soham invested Rs. 32,000 partly in schemes ‘I’ and
‘J’ for 4 years and 6 years, respectively. Scheme ‘I’ offers simple interest at 18% per annum, while scheme ‘J’ gives compound interest (compounded annually) at 22% per annum. Find the investment in scheme ‘J’ if the interest from ‘I’ is Rs. 2,880 more than that from ‘J’.Solution
ATQ, Let the investment in scheme ‘J’ be Rs. ‘v’. Investment in ‘I’ = Rs. (32000 - v). Simple interest from ‘I’ = (32000 - v) × 18% × 4. Compound interest from ‘J’ = v × [{1 + (22/100)}6 - 1]. Solving for ‘v’ with the specified interest difference, v = Rs. 18,000.
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