Question
Mark invested Rs 15,000 in a scheme at simple interest
20% per annum. After three years he withdrew the principal amount plus invested the entire amount in another scheme for two years, which earned him compound interest 12% per annum. What would be the interest earned by Mark at the end of five years?Solution
S.I = (15000 x 20 x 3)/100 = Rs 9,000 Amount = 15,000 + 9,000 = Rs 24,000 A = P(1 + r/100)n A = 24,000(1 + 12/100)2 A = 24,000(28/25)2 A = Rs 30,105.6 C.I = A – P = 30,105.6 – 24,000 = Rs 6,105.6 After five years, Total interest = Rs (9,000 + 6,105.6) = Rs 15,105.6
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