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. ‘18000 – p’ Interest earned from SIP P = (18000 – p) × 0.08 × 3 = Rs. ‘4,320 – 0.24p’ Interest earned from SIP Q = p × {(1 + 0.10)3 – 1} = Rs. 0.331p According to question: 4320 – 0.24p + 0.331p = 4775 0.091p = 455 p = 5000 So the amount invested in SIP Q = Rs.5,000
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