A certain investment scheme A offers interest rate of 10% in the first year, 15% in the second year and 20% in the third year compounded annually. Another investment scheme B offers 12% rate of interest compounded annually. Ram invests Rs. 2000 in investment scheme A and Rs. 800 in investment scheme B. What percent more interest is earned by Ram through investment in scheme A as compared to scheme B at the end of three years?

For scheme A, the amount after 3 years is 2000 * 1.10 * 1.15 * 1.20 = 3036, yielding an interest of 3036 - 2000 = 1036. For scheme B, the amount after 3 years is 800 * (1.12)^3 = 1123.94, yielding an interest of 323.94. The required percentage is ((1036 - 323.94) / 323.94) * 100, which equals 219.78%. The interest earned through scheme A is 219.75% more than scheme B.

• Thanks
• Wrong explanation