New Register for Workshop on How to start for NABARD 2025 (Stepwise Plan) - Apr 26, 7 PM

    Question

    'K' distributed his investments among two distinct

    funds, Mutual Fund X and Mutual Fund Y, in the respective ratio of 9:8. While Mutual Fund X generates simple interest, Mutual Fund Y yields compound interest, compounded annually, both at a 20% annual rate for a duration of two years. Afterward, the cumulative interest accrued amounts to Rs. 3560. Calculate the total sum that 'K' initially invested?
    A Rs.8200 Correct Answer Incorrect Answer
    B Rs.8520 Correct Answer Incorrect Answer
    C Rs.8500 Correct Answer Incorrect Answer
    D Rs.8000 Correct Answer Incorrect Answer

    Solution

    ATQ, Let the sum invested at simple interest be Rs. 9p And, the sum invested at compound interest be Rs. 8p According to the question, (9p × 20 × 2)/100 + 8p(1 + 0.2)^2 – 8p = 3560 Or, 18p/5 + 3.52p = 3560 Or, 35.6p = 17800 Or, p = 17800/35.6 = Rs.500 Therefore, total sum invested by 'K' = 9p + 8p = 17p = Rs.8500

    Practice Next

    Relevant for Exams: