Question
Kamal invested Rs. 6,250 in scheme ‘A’ offering simple
interest of 13% p.a. 4 years later, he reinvested the entire interest earned from scheme ‘A’ in another scheme ‘B’ offering compound interest of 10% p.a compounded annually. Find the total amount received from scheme ‘B’ after 2 years.Solution
ATQ,
Interest received from scheme ‘A’ = (6250 × 13 × 4) ÷ 100 = Rs. 3,250
Total amount received from scheme ‘B’ = 3250 × {1 + (10/100)}² = 3250 × (110/100)²
= 3250 × 1.21 = Rs. 3,932.50
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