Question
An equal sum of money is invested in two schemes which
offer interest at the same rate but one at simple interest and the other at compound interest (compounded annually). Simple interest and compound interest received at the end of 2 years is Rs. 2,400 and Rs. 2,640, respectively. Find the rate of interest.Solution
ATQ, Let the sum invested in two schemes be Rs. 'P'. Let the rate of interest be 'r%', per annum. We know that, simple interest received at the end of each year of investment is equal. Simple interest received at the end of first year = Simple interest received at the end of second year = (2400/2) = Rs. 1200 Also, simple interest and compound interest received at the end of first year are equal. So, simple interest received at the end of first year = Compound interest received at the end of first year = Rs. 1200 Compound interest received in the second year = 2640 - 1200 = Rs. 1440 So, we can say that a sum of Rs. 1200 amounts to Rs. 1440 at the end of a year at the given rate of interest. Compound interest received for 1 year = Simple interest received for 1 year Simple interest = Principal X (Rate/100) X Time 1200 X (r/100) X 1 = 1440 - 1200 So, r = 240 X (5/24) = 10 Therefore, rate of interest = r = 20%
What is the financial assistance provided under the Credit Linked Capital Subsidy for Technology Upgradation (CLCS-TUS) scheme?
The average office employee receives number of emails and text messages each day. If each takes 5 minutes, each employee would need more hours just to d...
Considering the challenges faced by MSMEs in maintaining consistent financial reporting standards, which of the following changes in the Income Tax Act ...
Visvesvaraya PhD scheme has been initiated by the Government with an objective of enhancing the number of PhDs in the country to compete globally in th...
Risks that could arise due to legal actions or uncertainty of interpretations of contracts & agreements is called
A multinational corporation with subsidiaries in multiple countries is exposed to significant currency risk due to fluctuations in exchange rates. The c...
Cash should be shown under which time bucket for inflow:
Consider the following statements regarding the purity of bullion:
1) The purity of bullion is measured in carats.
2) The higher the carat...
Which of the following regulatory bodies has its headquarters located in Gift City?
1) Insurance Regulatory and Development Authority of...
Consider the following statements regarding the use of bullion:
1) Bullion can be used for investment purposes as a hedge against inflation.
...