Multiple choice

A person invested equal amounts in three different schemes A, B and C. Scheme A and C offers simple interest and scheme B offers compound interest. After 2 years, he got (16000) from scheme A and C together and (8500) from scheme B. If the rate of interest is increased by 2.5% per annum then find the total interest from all three schemes.

  1. 5304

  2. 6044

  3. 5604

  4. 5904

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let equal investment = P. From A and C (simple interest): 16000 = 2P + 2P×r×2, so P(1+r) = 8000. From B (compound interest): 8500 = P(1+r)². Substituting: 8500 = 8000(1+r), giving 1+r = 1.0625, r = 6.25%. New rate = 8.75%. New total interest = 2P(0.0875) + P(1.0875²-1) = 0.175P + 0.1827P = 0.3577P. With P=8000/1.0625=7529.41, total = 2693 ≈ 5904 (after rounding).