Rahul gave 1500 Rs to Arun for 5 years. Arun return him the money with a simple interest at a rate of 14% per annum. Rahul invested this amount with his saving in a bank for 2 years which gives him 20% rate of interest per annum at compound interest. If after 2 years he receive an interest of Rs. 1408. Find the savings which Rahul add in the amount?

Step 1: Calculate amount from Arun using SI formula: SI = (P × R × T) / 100 = (1500 × 14 × 5) / 100 = Rs. 1050. Total received = Rs. 1500 + 1050 = Rs. 2550. Step 2: Let savings added be x. Total invested = Rs. (2550 + x) at 20% CI for 2 years. Using CI formula: Amount = Principal × (1 + r/100)^t. Interest earned = Rs. 1408. Solving: (2550 + x) × (1.20)^2 - (2550 + x) = 1408. This gives (2550 + x) × 0.44 = 1408, so 2550 + x = 1408 / 0.44 = 3200. Therefore x = 3200 - 2550 = Rs. 625.