Arunavo invested total sum of Rs. 16000 in two schemes (A and B) for two years. Scheme A offers compound interest (compounded annually) at the rate of 10% per annum and scheme B offers simple interes…

Question

Arunavo invested total sum of Rs. 16000 in two schemes (A and B) for two years. Scheme A offers compound interest (compounded annually) at the rate of 10% per annum and scheme B offers simple interest at the rate of 12% per annum. If the total interest earned by him from both the schemes after two years is Rs. 3504. How much money (principle) did he invest in scheme B?

Testwala · Accepted Answer

Rs. 4800

Testwala · Answer

Explanation: Let the amount invested in Scheme A be 'Rs.x'. Then, the amount invested in Scheme B = Rs. (16000-x) Amount earned from Scheme A = x × 1.1 × 1.1 = 1.21x. Interest earned from Scheme A = Rs.1.21x - Rs.x = Rs.0.21x (16000 − x) × 12 × 2 Interest earned from Scheme B = 100 = 3840 −0.24x Total interest = 0.21x+3840-0.24x = 3504 3840-0.03x = 3504 0.03x = 336 x = 11200. Amount invested in Scheme B = 16000-11200 = Rs.4800.

Answer: A. Rs. 4800

Explanation