Multiple choice

A man invested in two different schemes A & B and investment in scheme A is 25% more than that of scheme B. Scheme A offered SI at the rate of (R - 2.5)% for two year while scheme B offered SI at the rate of (R + 5)% for three years and ratio of interest received by man from scheme A to that of scheme B is 5 : 12. Find the total interest received by man, if he will invest Rs 2250 at the rate of 2R% per annum on CI for two years?

  1. 920 Rs

  2. 990 Rs

  3. 960 Rs

  4. 900 Rs

  5. 850 Rs
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Let the investment in scheme B be 4x, making the investment in scheme A 5x since it is 25% larger. Using the Simple Interest formula, the ratio of interests is (5x * (R - 2.5) * 2) / (4x * (R + 5) * 3) = 5/12, which simplifies to 10(R - 2.5) = 5(R + 5) and yields R = 10. The new investment of Rs 2250 at 2R%, which is 20%, compound interest for two years results in an amount of 2250(1.2)^2 = 3240. Subtracting the principal of 2250 from this amount gives a total interest of Rs 990.

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