Multiple choice

The simple interest received on Rs. 6800 at 14.5% simple interest for 3 years is x. If Rs. (2x + 1114) is invested at 30% per annum compounded annually for 2 years, then find the compound interest received after 2 years y. Find the value of x + y ?

  1. 8452.5

  2. 9564.8

  3. 7464.3

  4. 7808.7
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

x = (6800 * 14.5 * 3) / 100 = 2958. Investment = 2x + 1114 = 2(2958) + 1114 = 7030. Compound interest on 7030 at 30% for 2 years = 7030 * (1.3^2 - 1) = 7030 * 0.69 = 4850.7. x + y = 2958 + 4850.7 = 7808.7.

AI explanation

Using the simple interest formula SI = (Principal * Rate * Time) / 100, we find x = (6800 * 14.5 * 3) / 100, which gives x = 2958. The amount invested in compound interest is 2x + 1114 = 5916 + 1114 = 7030. Using the compound interest formula for two years, CI = Principal * (R/100) * (2 + R/100), we calculate y = 7030 * 0.30 * 2.30 = 4850.7. Adding these values together, x + y = 2958 + 4850.7 = 7808.7. The result is 7808.7.

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