Multiple choice

Sana invests Rs. 24,000 for 5 years in a scheme that offers 5% simple interest per annum. Meanwhile, Meera invests a certain sum in the same scheme for 3 years, and then reinvests the entire amount she receives at the end of 3 years for another 2 years at 4% simple interest. If the amount received by Meera at the end of 5 years exceeds that received by Sana by Rs. 19,680, what was the initial amount invested by Meera?

  1. Rs. 38,000

  2. Rs. 39,000

  3. Rs. 40,000

  4. Rs. 41,000

  5. Rs. 42,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Sana's final amount after 5 years is 24,000 * (1 + 0.05 * 5) = Rs. 30,000. For Meera, her amount after 3 years is 1.15P, and after reinvesting it for 2 years at 4%, her final amount is 1.15P * 1.08 = 1.242P. Since Meera's final amount exceeds Sana's by Rs. 19,680, we have 1.242P - 30,000 = 19,680, which gives P = Rs. 40,000.

AI explanation

Sana earns 5% simple interest on Rs. 24,000 for 5 years, so her total amount is 24000 added to 24000 multiplied by 5 multiplied by 0.05, which equals Rs. 30,000. Meera invests Rs. P for 3 years at 5% simple interest, giving an amount of 1.15P, and then reinvests it for 2 years at 4% simple interest to get a final amount of 1.15P multiplied by 1.08, which equals 1.242P. Meera's amount exceeds Sana's by Rs. 19,680, so 1.242P - 30000 equals 19680, meaning 1.242P equals 49680 and P equals Rs. 40,000.

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