Multiple choice

There are three investment schemes P, Q and R available in Bank Y. Schemes P and Q respectively offer 14% and 18% interest rates compounded annually, while scheme R offers 16% simple interest. Rakesh invests Rs. 16,000 in scheme R and Rs. 18,000 in scheme Q for two years, while Dharmesh invests Rs. 15,000 in scheme Q and Rs. 29,000 in scheme P for two years. What percent more interest will Dharmesh receive in comparison to Rakesh?

  1. 14.35%

  2. 16.58%

  3. 19.63%

  4. 20.35%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

First, calculate Rakesh's total interest: Rs. 5,120 from scheme R and Rs. 7,063.20 from scheme Q, totaling Rs. 12,183.20. Next, calculate Dharmesh's total interest: Rs. 5,886 from scheme Q and Rs. 8,688.40 from scheme P, totaling Rs. 14,574.40. The percentage by which Dharmesh's interest exceeds Rakesh's is (14,574.40 - 12,183.20) / 12,183.20 * 100, which is approximately 19.63%.

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