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ATQ, Let the sum invested in two schemes be Rs. 'P'. Let the rate of interest be 'r%', per annum. We know that, simple interest received at the end of each year of investment is equal. Simple interest received at the end of first year = Simple interest received at the end of second year = (2400/2) = Rs. 1200 Also, simple interest and compound interest received at the end of first year are equal. So, simple interest received at the end of first year = Compound interest received at the end of first year = Rs. 1200 Compound interest received in the second year = 2640 - 1200 = Rs. 1440 So, we can say that a sum of Rs. 1200 amounts to Rs. 1440 at the end of a year at the given rate of interest. Compound interest received for 1 year = Simple interest received for 1 year Simple interest = Principal X (Rate/100) X Time 1200 X (r/100) X 1 = 1440 - 1200 So, r = 240 X (5/24) = 10 Therefore, rate of interest = r = 20%
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