Question
Rs. 4500 is invested in scheme βAβ for a year at
simple interest of 40% p.a. The interest received from scheme βAβ is reinvested for 2 years in scheme βBβ which offers compound interest (compounded annually) of 20% p.a. What is the total amount received from scheme βBβ?Solution
Interest received from scheme βAβ = 4500 Γ (40/100) = Rs. 1800 Amount received from scheme βBβ = 1800 Γ {1 + (20/100)2} = 1.44 Γ 1800 = Rs. 2592
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