| Satish invests Rs. 35500 in a scheme which earns him simple interest at the rate of 15% per annum for two years. At the end of two years he reinvests the principal amount plus interest earned in another scheme which earns him compound interest at the rate of 20% per annum. What will be the total interest earned by Satish over the principal amount at the end of 5 yr? |
A) Rs. 30956.80
B) Rs. 35017.20
C) Rs. 43597.80
D) Rs. 44247.20
E) None of these
Correct Answer: D
Solution :
| Simple interest \[=\frac{35500\times 15\times 2}{100}=\text{Rs}.\,\,10650\] |
| \[\therefore \] Principal for another investment \[=35500+10650\] |
| \[=Rs.\,46150\] |
| Compound interests \[=46150\left[ {{\left( 1+\frac{20}{100} \right)}^{3}}-1 \right]\] |
| \[=46150\left[ {{\left( \frac{6}{5} \right)}^{3}}-1 \right]\] |
| \[=46150\left( \frac{216-125}{125} \right)\] |
| \[=\frac{41650\times 91}{125}=\text{Rs}\text{.}\,\,\text{33597}\text{.20}\] |
| Total interest earned \[=Rs.\,(10650+33597.20)\] |
| = Rs. 44247.20 |
You need to login to perform this action.
You will be redirected in
3 sec
