Multiple choice

Bank X offers investment in three different schemes A, B and C. Schemes A, B and C respectively offer 15%, 20% and 25% rates of interest compounded annually. Ram invests 50% of his money in scheme A, 50% of remaining in scheme B and remaining in scheme C. What will be his percent return at the end of three years?

  1. 56%

  2. 64%

  3. 68%

  4. 72%

  5. 60%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let total money = 100. Scheme A: 50 invested at 15% for 3 years = 50 * (1.15)^3 = 50 * 1.520875 = 76.04. Scheme B: 25 invested at 20% for 3 years = 25 * (1.2)^3 = 25 * 1.728 = 43.2. Scheme C: 25 invested at 25% for 3 years = 25 * (1.25)^3 = 25 * 1.953125 = 48.83. Total = 76.04 + 43.2 + 48.83 = 168.07. Return = 68%.

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