Multiple choice

Amit invested a certain amount of money in two different schemes: Scheme A and Scheme B. Scheme A offered a simple interest rate of 8% per annum, while Scheme B offered a compound interest rate of 6% per annum. After two years, Amit found that the total interest earned from both schemes was Rs. 3,636. If the amount invested in Scheme A was Rs. 5,000 more than the amount invested in Scheme B, find the total amount invested in both the schemes.

  1. 10,000

  2. 15,000

  3. 20,000

  4. 25,000

  5. 30,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let Scheme B investment be x, then Scheme A is x + 5000. Interest from A = 0.08 * (x + 5000) * 2 = 0.16x + 800. Interest from B = x * (1.06^2 - 1) = 0.1236x. Total interest 0.2836x + 800 = 3636 leads to 0.2836x = 2836, so x = 10000. Total investment = (x + 5000) + x = 25000.

AI explanation

Let the amount invested in Scheme B be x, making the investment in Scheme A equal to x plus 5000. The interest from Scheme A after 2 years is (x plus 5000) times 8 times 2 divided by 100, equaling 0.16x plus 800, and the compound interest from Scheme B is x times (1.06 squared minus 1), equaling 0.1236x. Equating the sum of these interests to 3636 gives 0.2836x plus 800 equals 3636, so 0.2836x equals 2836 and x equals 10000. The total amount invested in both schemes is x plus x plus 5000, which is 10000 plus 10000 plus 5000, resulting in Rs. 25,000.

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