Question
Rs. 6,000 is deposited in Scheme 'X' which provides
compound interest at 8% per annum, compounded annually. Another amount of Rs. 5600 is invested in Scheme 'Y' giving simple interest at 20% per annum. What is the ratio of the total returns from Scheme 'X' and Scheme 'Y' respectively after 2 years?Solution
ATQ,
Total amount received from scheme ‘X’ = 6000 × {1 + (8/100)}² = 6000 × (108/100)² = (6000/100) × 108² ÷ 100 = 60 × 116.64 = Rs. 6998.40 Total amount received from scheme ‘Y’ = 5600 + (5600 × 20 × 2 ÷ 100) = 5600 + 5600 × (40/100) = 5600 + 2240 = Rs. 7840 Therefore, required ratio = 6998.40 : 7840 = 875 : 980 = 25 : 28
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