Multiple choice

A invests Rs. X at rate of 20% p.a. compound interest for 2 years. At the end of 2 years, he received Rs. 1698.4 as interest. If he invests Rs. 'X + 500' at the rate of 23% simple interest for 3.5 years, then find simple interest received by him.

  1. 3964.8

  2. 3509.8

  3. 3254.8

  4. 3658.8
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B Correct answer
Explanation

CI for 2 years at 20% is 44% of X. 0.44X = 1698.4, so X = 3860. New principal = 3860 + 500 = 4360. SI = (P*R*T)/100 = (4360 * 23 * 3.5) / 100 = 43.6 * 80.5 = 3509.8.

AI explanation

Using the compound interest formula for two years, CI = Principal * (R/100) * (2 + R/100), we substitute the known values: 1698.4 = X * 0.20 * 2.20. Solving for X gives X = 1698.4 / 0.44 = 3860. The new principal sum becomes X + 500 = 4360. Applying the simple interest formula SI = (Principal * Rate * Time) / 100, we get SI = (4360 * 23 * 3.5) / 100 = 3509.8. The result is 3509.8.

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