Question
Ramesh invested Rs. 7,500 in scheme ‘X’ offering simple
interest of 12% p.a. 3 years later, he reinvested the entire interest earned from scheme ‘X’ in another scheme ‘Y’ offering compound interest of 8% p.a. compounded annually. Find the total amount received from scheme ‘Y’ after 2 years.Solution
ATQ,
Interest received from scheme ‘X’ = (7500 × 12 × 3) ÷ 100 = Rs. 2,700
Total amount received from scheme ‘Y’ = 2700 × {1 + (8/100)}² = 2700 × (108/100)²
= 2700 × 1.1664 = Rs. 3,149.28
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