📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Mr. Sharma invested Rs. 9600 in Scheme 'A', which offers

    compound interest at a rate of 'r'% per annum, compounded annually for 2 years. After 2 years, he earned Rs. 2,550 as interest. Subsequently, he reinvested the total amount received from Scheme 'A' into Scheme 'B' for a period of 4 years. Scheme 'B' provides simple interest at a rate of (r + 2.5)% per annum. Calculate the interest he earned from Scheme 'B' at the end of 4 years.
    A Rs.7290 Correct Answer Incorrect Answer
    B Rs.7690 Correct Answer Incorrect Answer
    C Rs.8190 Correct Answer Incorrect Answer
    D Rs.6980 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Total amount received from scheme 'A' = Rs. 9600 + 2550 = Rs. 12150

    We know that, Amount = P x (1 + rate/100) time

    So, 12150 = 9600 (1 + r/100)  2

    Or, (12150/9600) = (1 + r/100)  2

    Or, (81/64) = (1 + r/100)  2

    Or, (9/8)  2  = (1 + r/100)  2

    Or, (9 - 8) /8 = (r/100)

    Or, (1/8) = (r/100)

    Or, 'r' = 12.5

    So, rate of interest for scheme 'B' = (12.5 + 2.5) % = 15%

    So, interest received from scheme 'B' = 12150 X 0.15 X 4 = Rs. 7,290

    Practice Next
    More Simple and compound interest Questions
    ask-question