Multiple choice

Dinesh invested certain amounts in two different banks PNB and SBI. PNB offers simple interest at 14% per annum and SBI offers compound interest at 5% per annum. The interest accrued on the amount invested in PNB in 2 years was Rs.4200 and the total amount invested was Rs.38000. What was the interest accrued on the amount invested in SBI?

  1. Rs.4375.5

  2. Rs.2857.5

  3. Rs.2357.5

  4. Rs.2537.5

  5. Can't be determined
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

PNB investment: SI = P×R×T/100, so 4200 = P×14×2/100, giving P = 4200×100/28 = Rs.15,000. SBI investment = Rs.38,000 - Rs.15,000 = Rs.23,000. CI for 2 years at 5%: Amount = 23,000×(1.05)² = 23,000×1.1025 = Rs.25,357.50. Interest = Rs.25,357.50 - Rs.23,000 = Rs.2,357.50. Option C is correct.

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