"R" made certain investments with a 40% annual compound

Solution

ATQ, Effective rate of interest = 40 ÷ 4 = 10% p.a. And effective time period = (9/12) X 4 = 3 terms We know that for compound interest, Amount = Sum X {1 + (rate of interest/100) }^{time period} Let the sum invested be Rs. 'S' So, 199650 = S X {1 + (10/100) }³ Or, 199650 = S X (1.1)³ Or, 199650 = 1.331S So, S = 1,50,000 Therefore, sum invested = Rs. 1,50,000 For I: Interest received = (125000 X 0.3 X 4) = Rs. 1,50,000 Therefore, statement I is true. For II: Cost price of the article = (240000/1.4) = Rs. 171428.57 Therefore, statement II is false. For III: Difference between savings of 'P' and 'Q' = 0.6 X (a + 406320) - 0.6 X (a + 156320) = 0.6 X (406320 - 156320) = 0.6 X 250000 = Rs. 1,50,000 Therefore, statement III is true.