Question
An individual invests Rs. 6,000 at a simple interest
rate of 8% per annum. After 2 years, he adds Rs. 1,800 to the investment, and the total amount is kept for another 2 years at an increased interest rate of 10% per annum. Calculate the total interest earned from both investments over the 4-year period.Solution
Interest on the Initial Deposit of 1,200 for the First 2 Years 
Principal after 2 Years = 6000 + 960 = 6960 And 1800 is added additionally Total principal for investing for next 2 more years = 6960+1800 = 8760 Â Interest on the 8760 for the Remaining 2 Years 
= 1752 total interest earned over the entire 5-year period = 960+1752= 2712
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