Multiple choice

Mohan invests certain amount of money for SI at 10% interest rate for one year and same amount for compound interest at 5% interest rate compounded annually for two years. If the sum of total interest is Rs. 16,200, then the amount invested by Mohan is

  1. Rs. 50,000

  2. Rs. 60,000

  3. Rs. 70,000

  4. Rs. 80,000

  5. Rs. 90,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SI = P * 0.10 * 1 = 0.1P. CI = P * (1.05^2 - 1) = P * (1.1025 - 1) = 0.1025P. Total = 0.1P + 0.1025P = 0.2025P. 16200 = 0.2025P. P = 16200 / 0.2025 = 80000.

AI explanation

Let the amount invested be P. Using the simple interest formula, the interest for one year at 10% is (P * 10 * 1) / 100 = 0.10P. Using the compound interest formula, the interest for two years at 5% is P(1 + 5/100)^2 - P = P(1.1025) - P = 0.1025P. The sum of these interests is 0.10P + 0.1025P = 0.2025P, which is given as Rs. 16,200. Solving P = 16200 / 0.2025 gives P = Rs. 80,000.

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