Multiple choice

Wilson invested Rs. 'M' in fund-1 and received an interest of Rs. 7,150 in two years at the rate of 20 percent compounded annually. If he invested Rs. (M + 3,750) in fund-2 and got 12.5% p.a. simple interest, then what is the interest received by him in fund-2 if he invested for 4 years?

  1. Rs. 10,000

  2. Rs. 11,000

  3. Rs. 12,000

  4. Rs. 10,800

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

Fund-1: M * (1.2^2 - 1) = 7150 => M * 0.44 = 7150 => M = 16250. Fund-2: Principal = 16250 + 3750 = 20000. Interest = (20000 * 12.5 * 4) / 100 = 20000 * 0.5 = 10000.

AI explanation

For fund-1, using the compound interest formula, 7150 equals M multiplied by 1.2 squared minus M, which simplifies to 0.44M. Solving for M gives M = 16250, making the fund-2 principal 16250 + 3750 = 20000. The simple interest for fund-2 is 20000 multiplied by 12.5 multiplied by 4, all divided by 100, resulting in an interest of Rs. 10,000.

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