Multiple choice

The respective ratio of the sums invested for 2 years each, in scheme A offering 20% per annum compound interest and in scheme B offering 9% simple interest is 1 : 3. Difference between the interest earned from both the scheme is Rs. 1200. How much was invested in scheme A?

  1. 10000

  2. 12000

  3. 5280

  4. 52800

  5. 36000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let investment in A be x, so investment in B is 3x. For scheme A (CI at 20% for 2 years): Amount = x(1.2)² = 1.44x, so interest = 0.44x. For scheme B (SI at 9% for 2 years): Interest = 3x × 0.09 × 2 = 0.54x. Difference = 0.54x - 0.44x = 0.10x = 1200. Therefore x = 12000.

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