Question
Rs. 2500 is invested in scheme ‘A’ for a year at
simple interest of 25% 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’?Solution
Calculate the simple interest from scheme A Principal (P) = ₹2500 Rate of interest (R) = 25% per annum Time (T) = 1 year The formula for simple interest is: 
Substitute the values: 
The interest received from scheme A is ₹625.
Reinvest the interest in scheme B at compound interest Principal for scheme B = ₹625 (interest received from scheme A) Rate of interest (R) = 20% per annum Time (T) = 2 years The formula for compound interest (compounded annually) is: 
Substitute the values: 
The total amount received from scheme B is ₹900.
RBI (Reserve Bank of India) has been organizing the Financial Literacy Week every year to promote financial education across the country. Will it be don...
Which entity sponsors the highest number of Regional Rural Banks (RRBs) in India?
What is the purpose of the 'Anuvadini' app launched by the central government?
What was the occasion on which the BrahMos Aerospace facility in Lucknow was inaugurated?
Recently Devasahayam Pillai was in news. Who is he?
...NTPC's initiative aimed at tackling gender inequality through workshops for girls is known as what?
In the India–Africa development partnership, how many scholarships were offered to African youth and how many have been utilised?
Recently Air India seals world's largest aircraft deal at $70 bn with which two international aircraft maker companies?
Consider the following statements about Migration and Development Brief:
1. It is prepared by the World Bank.
2. ...
What is the key focus of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan's visit to India in 2024?
Relevant for Exams:
