Question
'X' invested Rs. 18,000, splitting the amount between
two SIPs: 'P' offering 8% per annum simple interest and 'Q' offering 10% per annum compound interest, compounded annually. Determine the amount invested in SIP 'Q' if 'X' earned a total interest of Rs. 4,775 after three years.Solution
ATQ, Let the amount invested in SIP 'Q' be = Rs.'p' So the amount invested in SIP 'P' = Rs. β18000 β pβ Interest earned from SIP P = (18000 β p) Γ 0.08 Γ 3 = Rs. β4,320 β 0.24pβ Interest earned from SIP Q = p Γ {(1 + 0.10)3 β 1} = Rs. 0.331p According to question: 4320 β 0.24p + 0.331p = 4775 0.091p = 455 p = 5000 So the amount invested in SIP Q = Rs.5,000
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