Multiple choice

Ravi invested Rs. P in a scheme A offering simple interest at 10% p.a. for two years. He invested the whole amount he received from scheme A, in another scheme (B) offering simple interest at 12% p.a. for five years. If the difference between the interests earned from schemes A and B was Rs. 13,00, what is the value of P?

  1. 3000

  2. 3200

  3. 2500

  4. 2200

  5. None of these

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

Scheme A: Interest = P × 10% × 2 = 0.2P. Amount received = 1.2P. Scheme B: Interest = 1.2P × 12% × 5 = 0.72P. Difference = 0.72P - 0.2P = 0.52P = 13000. Therefore P = 13000/0.52 = 25000. Wait, this gives P = 25000, not 2500. Checking: 0.52 × 2500 = 1300, not 13000. The question says Rs. 13,00 which is ambiguous - could be 1300 (with comma typo) or 13000. If 1300, then P = 2500.