Multiple choice

Rekha started with a total sum of Rs. 36,000. She allocated Rs. 14,000 to a fixed deposit at 6.2% per annum, Rs. 10,000 to another account earning 5.12% per annum, and placed the rest of the amount in a third account offering r% simple interest annually. Her overall yearly income from all three deposits was equal to 5.5% of her initial capital. If Rekha had chosen to invest the entire Rs. 36,000 at the rate of (r + 3)%, then what would have been her annual return (in Rs.)?

  1. 2,280

  2. 2,440

  3. 2,880

  4. 2,840
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total income = 36000 * 0.055 = 1980. Income from 14000 at 6.2% = 868. Income from 10000 at 5.12% = 512. Remaining 12000 at r% = 1980 - 868 - 512 = 600. So r = (600/12000)*100 = 5%. New rate = 5+3 = 8%. Return = 36000 * 0.08 = 2880.

AI explanation

The total yearly income is 5.5 percent of 36000, which equals 1980. The interest from the first two accounts is 14000 times 6.2 percent plus 10000 times 5.12 percent, equaling 868 plus 512 equals 1380. The interest from the third account is 1980 minus 1380 equals 600, so the rate r is 600 divided by 12000 equals 5 percent. Investing all 36000 at r plus 3 percent gives an annual return of 36000 times 8 percent, which equals 2880.

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