Multiple choice

An amount at 5% compound interest for the first 2 years, followed by simple interest of 10% for the subsequent 3 years becomes Rs.2579.85. Find the initial amount.

  1. 1200

  2. 1400

  3. 1600

  4. 1800

  5. 2000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

After 2 years at 5% CI: A(1.05)^2 = 1.1025A. Next 3 years at 10% SI on this amount: 1.1025A * 0.10 * 3 = 0.33075A. Total = 1.43325A = 2579.85, so A = 1800. Option D is correct.

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