Question
A sum of ₹5,000 is invested at 8% simple interest per
annum for 3 years. After 3 years, the interest is reinvested at 6% compound interest for 2 years. Find the total amount after 5 years.Solution
Simple Interest = (P × R × T) / 100 = (5000 × 8 × 3) / 100 = ₹1,200. Amount after 3 years = Principal + Interest = ₹5,000 + ₹1,200 = ₹6,200. Now, this ₹6,200 is reinvested at 6% compound interest for 2 years. Amount = P(1 + R/100)^T = 6200 × (1 + 6/100)^2 = 6200 × (1.06)^2 = 6200 × 1.1236 = ₹6,952.32. Correct Option: d
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