Question
Ramesh invested Rs. 8,000 in scheme ‘X’ offering simple
interest of 15% p.a. After 3 years, he reinvested the total interest earned from scheme ‘X’ in scheme ‘Y’ offering compound interest of 8% p.a compounded annually. Calculate the total amount received from scheme ‘Y’ after 2 years.Solution
ATQ,
Interest received from scheme ‘X’ = (8000 × 15 × 3) ÷ 100 = Rs. 3,600
Total amount received from scheme ‘Y’ = 3600 × {1 + (8/100)}² = 3600 × (108/100)²= 3600 × 1.1664 = Rs. 4,199.04
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