Multiple choice

Rohit invests a total of ₹90,000 in three schemes A, B, and C for two years. The annual interest rates (compounded annually) are 10%, 8%, and 12%, respectively. The amount initially invested in scheme A is ₹25,000. The remaining amount is divided between schemes B and C such that the total interest from all three schemes during the first year is ₹9,500. If the interest is compounded annually, what is the total interest earned from all three schemes in the second year?

  1. ₹10,308

  2. ₹10,526

  3. ₹11,248

  4. ₹11,900
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Scheme A interest is 25000 * 0.10 = 2500. Total interest is 9500, so B + C interest is 7000. With 65000 remaining, let B = x, C = 65000 - x. 0.08x + 0.12(65000 - x) = 7000 leads to x = 20000 (Scheme B) and C = 45000. Second year interest is (25000 * 1.1 * 0.1) + (20000 * 1.08 * 0.08) + (45000 * 1.12 * 0.12) = 2750 + 1728 + 6048 = 10526.

AI explanation

The first year interest on scheme A is 10 percent of 25000, which equals 2500. Let the investments in schemes B and C be x and y, so x plus y equals 65000. The first year interest equation is 0.08x plus 0.12y plus 2500 equals 9500, which simplifies to 0.08x plus 0.12y equals 7000. Solving these equations gives x equals 2000 and y equals 63000. In the second year, the total interest is 10 percent of 27500 plus 8 percent of 2160 plus 12 percent of 70560, totaling 10526. The total interest earned in the second year is ₹10,526.

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