A man invests Rs. 7,000 at 8% per annum simple interest for 2 years and Rs. 10,000 at compound interest at the same rate for the same period, compounded annually. What will be the total interest and the total amount (in Rs.) respectively, on maturity?

Explanation

Given: Sum = Rs.7000 Rate of interest = 8% Time = 2 years Formula: Let P = Principal, R = rate of interest and N = time SI = PNR/100 CI = P(1 + R/100) 2- P Calculation: SI = 7000 × 8 × 2/100 = Rs.1120 Amount after SI = 7000 + 1120 = Rs.8120 CI = 10000(1 + 8/100) 2- 10000 = Rs.1664 Amount after CI = 10000 + 1664 = Rs.11664 ∴ Total amount after maturity = 8120 + 11664 = Rs.19784 Total interest after 2 years = 1120 + 1664 = Rs.2784