Question
Priya invested Rs. 5,500 in scheme ‘C’ offering simple
interest of 12% p.a. After 5 years, she reinvested the interest earned in scheme ‘D’ offering compound interest of 9% p.a compounded annually. Find the total amount Priya received from scheme ‘D’ after 3 years.Solution
ATQ,
Interest received from scheme ‘C’ = (5500 × 12 × 5) ÷ 100 = Rs. 3,300
Total amount received from scheme ‘D’ = 3300 × {1 + (9/100)}³ = 3300 × (109/100)³
= 3300 × 1.295 = Rs. 4,273.50
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