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      Question

      A man invested amount X in scheme A at 8 % per annum

      simple interest for 2 years which gives him the interest of Rs 1840. Find the compound interest if he invested (X + 1500) at the rate of 12% compounded annually in scheme B for same years?
      A 3317.2 Correct Answer Incorrect Answer
      B 3217.2 Correct Answer Incorrect Answer
      C 3307.2 Correct Answer Incorrect Answer
      D 3347.2 Correct Answer Incorrect Answer
      E none of the above Correct Answer Incorrect Answer

      Solution

      For scheme A: Principal = Rs. X Rate of interest = 8% per annum Time = 2 years Simple interest = Rs. 1840 We know, Simple Interest = (Principal × Rate × Time)/100 So, 1840 = (X × 8 × 2)/100 Or, 1840 = 16X/100 Or, X = (1840 × 100)/16 So, X = Rs. 11,500 Now, amount invested in scheme B = X + 1500 = 11,500 + 1,500 = Rs. 13,000 Rate of interest = 12% per annum Time = 2 years Compound Interest = Principal × [(1 + R/100)T – 1] = 13000 × [(1 + 12/100)2 – 1] = 13000 × [(112/100)2 – 1] = 13000 × [(28/25)2 – 1] = 13000 × [(784/625) – 1] = 13000 × (159/625) = Rs. 3307.20 Therefore, compound interest earned from scheme B = Rs. 3307.20.

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