Question
Sohan invested Rs. P in Scheme X at 20% per annum under
simple interest for 3 years and Rs. Q in Scheme Y at 12% per annum under compound interest for 2 years. If the interest obtained from Scheme X (using compound interest) and Scheme Y (using simple interest) is Rs. 8240 more than when calculated the other way around, find Sohan’s total investment, given that the investment in Scheme X is 40% more than that in Scheme Y.Solution
Let the money invested in Scheme Y = 100a So money invested in Scheme X = 140% of 100a = 140a Total interest earned in first case = 140a x 20% x 3 + 100a x 112% x 112% - 100a = 84a + 25.44a = 109.44a Total interest invested in Scheme Y = (140a x 1.2 x 1.2 x 1.2 – 140a) + 100a x 12% x 2 = 101.92a + 24a = 125.92a According to question, (125.92a – 109.44a) = 8240 So, value of a = 500 Total money invested = (140a + 100a) = Rs. 120000 Hence answer is option B
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