Compound Interest Ques 6
Question
Rs. 7350 was partly invested in Scheme A at $10 \%$ p.a. compound interest (compounded annually) for 2 years and partly in Scheme B at $7 \%$ p.a. simple interest for 4 years. Both the schemes earn equal interests. How much was invested in Scheme A?
(1) Rs. 5000
(2) Rs. 4200
(3) Rs. 4400
(4) Rs. 4600
(5) None of these
(SIDBI Officer Online Exam.24.02.2016)
Show Answer
Answer: (2)
Solution: (2)
Investment in scheme A $=$ Rs. $x$
$\therefore$ Investment in scheme B $=$ Rs. $(7350-x)$
According to the question,
$\frac{P_{1} \times R_{1} \times T_{1}}{100}=P_{2}\left[\left(1+\frac{R_{2}}{100}\right)^{T_{2}}-1\right]$
$\Rightarrow \frac{(7350-x) \times 7 \times 4}{100}$ $=x\left[\left(1+\frac{10}{100}\right)^{2}-1\right]$
$\Rightarrow \frac{(7350-x) \times 28}{100}=x\left(\frac{121}{100}-1\right)$
$\Rightarrow \frac{(7350-x) \times 28}{100}=\frac{x \times 21}{100}$
$\Rightarrow(7350-x) 4=3 x$
$\Rightarrow 7350 \times 4-4 x=3 x$
$\Rightarrow 7 x=7350 \times 4$
$\Rightarrow x=\frac{7350 \times 4}{7}=$ Rs. 4200
BETA
