Multiple choice

A certain bank offers 8% rate of interest in the 1st year and 9% in the 2nd year in a certain fixed deposit scheme. If an amount of Rs. 17,658 is received after investing for 2 years in this scheme, then what is the amount (in Rs.) invested?

  1. 16,000

  2. 15,000

  3. 15,500

  4. 16,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let P be principal. P * 1.08 * 1.09 = 17658. P * 1.1772 = 17658. P = 17658 / 1.1772 = 15000.

AI explanation

Using the present worth formula for compound interest with different rates, the principal equals the maturity amount divided by the product of (1 + R1/100) and (1 + R2/100). Substituting the given amounts and rates gives 17658 / (1.08 * 1.09). Calculating the denominator yields 1.1772, and dividing 17658 by 1.1772 gives the invested amount of Rs. 15,000.

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