Multiple choice

Abhi invested an amount of Rs A for 2 years at 12% compound interest and received some amount of interest. Sonali invested Rs (A + 1500) for 3 years at 8% simple interest and received same amount of interest as Abhi received. Find the amount that is invested by Abhi.

  1. ₹20000

  2. ₹25000

  3. ₹27500

  4. ₹25550

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

Abhi's CI (compound interest): A[1.12² - 1] = A[1.2544 - 1] = 0.2544A. Sonali's SI (simple interest): (A+1500)×3×0.08 = 0.24(A+1500). Equating: 0.2544A = 0.24A + 360. Solving: 0.0144A = 360, giving A = 36000/1.44 = 25000.