Question

Abhishek allocates Rs.1600 each into two different

Q: Answer-Abhishek allocates Rs.1600 each into two different investment schemes, A and B. Scheme A provides si...

Interest earned by Scheme A 1600 R 2 2100 32R 2 Equivalent interest rate by scheme B for 2 years R R R2100 Interest earned by Scheme B 1600100 R R R210016 2R R2100 Therefore, according to question, 16 2R R2100 32R 2 80 16 2R R2100 2R 4 80 R2100 4 5 R2100 1 R2 100 R 100 R 10

investment schemes, A and B. Scheme A provides simple interest annually at a rate of (R-2)%, while scheme B compounds annually at a rate of R%. At the end of two years, the interest accumulated from scheme B surpasses that from scheme A by Rs.80. Determine the rate R%.

A 12

B 10

C 8

D 7

E 5