Multiple choice

An amount of x is invested at the rate of 10% at simple interest for 3 years and the amount received is further invested in another scheme for 2 years at a compound annual interest rate of 20%. If the last receipt is Rs. 12168, find the value of x.

  1. 4500

  2. 6500

  3. 2500

  4. 5500

  5. 3500

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

First 3 years at 10% SI: Amount = x(1 + 0.10×3) = 1.3x. This amount invested for 2 years at 20% CI: Final = 1.3x × (1.2)² = 1.3x × 1.44 = 1.872x. Given 1.872x = 12168, so x = 12168/1.872 = 6500. Option B is correct. Verification: Year 1-3 SI: 6500 + 1950 = 8450. Year 4-5 CI: 8450 × 1.2 = 10140 (year 4), 10140 × 1.2 = 12168 (year 5). ✓