Question
Ashish invests an amount of Rs. 'A' into two different
SIPs, named 'P' and 'Q', for durations of 3 years and 2 years respectively. The first SIP 'P' yields a simple interest at an annual rate of 11%, while the second SIP 'Q' provides compound interest at an annual rate of 15%, compounded yearly. Given that the net difference in the amounts received from both SIPs is Rs. 60, determine the value of 'A'.Solution
ATQ, In SIP P: Amount received = A + {(A X 11 X 3) /100} = Rs. 1.33A In SIP Q: Amount received = A X {1 + (r/100) }2 = Rs. 1.3225A ATQ: 1.33A - 1.3225A = 60 Or, 0.0075A = 60 Or, 'A' = (60/0.0075) = 8000
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