New 55% Off on All Courses - Enroll Now! Click Here

    Question

    An individual, "Y," invests Rs.

    24,000 in each of two SIPs: "A" and "B." SIP "A" provides compound interest at an annual rate of "r%" for 2 years, compounded annually, while SIP "B" offers simple interest at the same annual rate of "r%" for 2 years. If the difference between the interest earned from SIP "A" and SIP "B" amounts to Rs. 777.6, determine the interest earned from SIP "B."
    A Rs. 8,500 Correct Answer Incorrect Answer
    B Rs. 5,640 Correct Answer Incorrect Answer
    C Rs. 8,640 Correct Answer Incorrect Answer
    D Rs. 7,650 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, Difference between interests earned on investing Rs. 'p' each on simple interest at 'r'% p.a. and compound interest at 'r'% p.a. compounded annually for 2 years = p × (r2/10,000) So, 24,000 × (r2 /10,000) = 777.6 Or, (r2 /10,000) = (777.6/24,000) Or, (r2 /10,000) = 0.0324 Or, r2 = 324 So, 'r' = 18 Since, 't' can't be negative, so 'r' = 18% Simple interest = Principal × rate × time ÷ 100 Therefore, required interest = 24,000 × 18 × 2 ÷ 100 = Rs. 8,640

    Practice Next

    Relevant for Exams: