Question
Sunita invested Rs. 10,000 in scheme ‘M’ offering
simple interest of 11% p.a. After 2 years, she invested the entire interest earned in scheme ‘N’ offering compound interest of 7% p.a compounded annually. Calculate the total amount received from scheme ‘N’ after 4 years.Solution
ATQ,
Interest received from scheme ‘M’ = (10000 × 11 × 2) ÷ 100 = Rs. 2,200
Total amount received from scheme ‘N’ = 2200 × {1 + (7/100)}⁴ = 2200 × (107/100)⁴
= 2200 × 1.3108 = Rs. 2,883.76
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