Question
Meera had Rs. 3500 with her. She invested Rs. ‘c’ at
14% p.a. simple interest for 6 years and the remaining sum at 20% p.a. compound interest, compounded annually for 2 years. If the total interest received by her is Rs. 2300, then find the value of ‘c’.Solution
ATQ, Simple interest received by Meera = (c × 14 × 6)/100 = Rs. 0.84c Compound interest received by Meera = (3500 – c)(1 + 20/100)² – (3500 – c) = Rs. 1.44(3500 – c) - (3500 - c) = Rs. 0.44(3500 - c) According to the question, 0.84c + 0.44(3500 – c) = 2300 Or, 0.84c + 1540 - 0.44c = 2300 Or, 0.4c = 2300 - 1540 Or, 0.4c = 760 Or, c = 760 / 0.4 = 1900
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