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    Question

    Rs. 4500 is invested in scheme ‘A’ for a year at

    simple interest of 40% p.a. The interest received from scheme ‘A’ is reinvested for 2 years in scheme ‘B’ which offers compound interest (compounded annually) of 20% p.a. What is the total amount received from scheme ‘B’?
    A Rs. 2488 Correct Answer Incorrect Answer
    B Rs. 2988 Correct Answer Incorrect Answer
    C Rs.2592 Correct Answer Incorrect Answer
    D Rs. 2188 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Interest received from scheme ‘A’ = 4500 × (40/100) = Rs. 1800 Amount received from scheme ‘B’ = 1800 × {1 + (20/100)2} = 1.44 × 1800 = Rs. 2592

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