Question
A person invested Rs. 50,000 in scheme A that offers
simple interest at 25% p.a. Four years later, they withdrew Rs. x from scheme A and placed it in scheme B that offers compound interest of 50% p.a., compounded annually. If three years after moving the money to scheme B, the amount from scheme B exceeded the amount from scheme A by Rs. 30,000, find x.Solution
ATQ, Amount in scheme A after 4 years = (50000 × 25 × 4)/100 + 50000 = 100000 Let the amount withdrawn from scheme A be Rs. x. So, amount remaining in A = (100000 – x). ATQ, after 3 years: {(100000 – x) × 1.75} + 30000 = x × (1.5)³ (100000 – x) × 1.75 + 30000 = 3.375x 175000 – 1.75x + 30000 = 3.375x 205000 = 5.125x x = 40000
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