Multiple choice

Mr. X invested certain amounts in schemes A and B. Scheme A offers simple interest at 12% p.a. and Scheme B offers compound interest at 10% p.a. Interest accrued on the amount invested in Scheme A in 2 years was Rs. 3600 and the total amount invested was Rs. 35,000. What was interest accrued on the amount invested in Scheme B?

  1. Rs. 4500

  2. Rs. 4200

  3. Rs. 4000

  4. Rs. 3000

  5. Rs. 3600
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Scheme A interest is 3600 at 12% for 2 years, so the principal is 3600 / (0.12 * 2) = 15000. The total investment is 35000, so Scheme B principal is 35000 - 15000 = 20000. Interest on 20000 at 10% compound interest for 2 years is 20000 * (1.1^2 - 1) = 20000 * 0.21 = 4200.

AI explanation

Using the simple interest formula, the principal invested in Scheme A is calculated as 3600 = P * 12 * 2 / 100, which gives P = Rs. 15000. Since the total amount invested was Rs. 35000, the principal invested in Scheme B is Rs. 20000. The compound interest on this amount for 2 years at 10% is 20000 * (1.1)^2 - 20000 = 24200 - 20000 = Rs. 4200.

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