New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Simran Funded Rs. 70,000 in two different SIP's. She

    funded the smaller amount at CI of 20% p.a. compounded annually, and larger amount at SI of 16.5% for 2 years. If the interest earned from both SIP's is same, then find the amount invested at compound interest.
    A Rs.40000 Correct Answer Incorrect Answer
    B Rs.20000 Correct Answer Incorrect Answer
    C Rs.30000 Correct Answer Incorrect Answer
    D Rs.25000 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, we can say that Let the amount invested at compound interest be Rs. 'A'. So, amount invested at simple interest = Rs. (70000 - A) Compound interest earned in two years = A × (1.2)2 - A = Rs.0.44A Simple interest earned in two years = {(70000 - A) × 16.5 × 2} ÷ 100 = Rs. {(70000 -A) × 0.33} Then, 0.44A = (70000 - A) X 0.33 Or, 0.44A = 23100 - 0.33A Or, 0.77A = 23100 So, A = 30000 So, amount invested at compound interest = Rs.30,000

    Practice Next

    Relevant for Exams: