Multiple choice

Ankur invested X Rs. at the rate of 15% per annum compound interest for two years and get total interest of 5805 Rs. if Ankur invest (X + 7000) Rs. for another two year at additional rate of 5%, then what will be compound interest on that investment?

  1. 10500 Rs.

  2. 11000 Rs.

  3. 11500 Rs.

  4. 15100 Rs.

  5. 12500 Rs.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 15% CI, 2 years, total interest = 32.25% of X. 0.3225X = 5805 => X = 18000. New investment = 25000 at 20% for 2 years. CI = 25000 * (1.2^2 - 1) = 11000.

AI explanation

Using the two-year compound interest formula, 5805 equals X multiplied by (15 plus 15 plus 15 multiplied by 15 divided by 100) divided by 100, which simplifies to 5805 equals X multiplied by 32.25 divided by 100 and yields a principal X of 18000. The new principal is 25000 and the new rate is 20 percent. Applying the two-year compound interest formula again gives 25000 multiplied by (20 plus 20 plus 20 multiplied by 20 divided by 100) divided by 100, which equals 25000 multiplied by 44 divided by 100, resulting in a compound interest of 11000.

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