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.
Which is the largest chemical fertilizer producer in India?
Which of the following is an example of man-made fibre?
How can the findings of the nitrogen use efficiency (NUE) study by biotechnologists at Guru Gobind Singh Indraprastha University (GGU) potentially impac...
‘The Story of My Experiments with Truth’ was written by:
What is the investment cap for IREDA after being granted Navratna status in April 2024?
On the bank of now dry course of which river, the ancient city of Harappa was built?
What is the time duration after which a savings or current account is treated as inoperative if there are no customer-induced transactions?
What is the height of the Statue of Unity that is located in Gujarat?
Priorities of the government in the fiscal area and its related policies and deviations are mentioned in which part of the budget document?
Who coined the phrase 'global village'?
Relevant for Exams:
