A person invested equal amounts in two schemes A and B at the same rate of interest. Scheme A offers simple interest while scheme B offers… — Answer & Discussion

A person invested equal amounts in two schemes A and B at the same rate of interest. Scheme A offers simple interest while scheme B offers compound interest. After two years he got Rs. 1920 from scheme A as interest and Rs. 2112 from scheme B. If the rate of interest is increased by 4%, what will be the total interest after two years from both schemes?

ARs. 4884.48
BRs. 4888.48
CRs. 4884.84
DRs. 4384.48

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Discussion 1

CCommunity21 May 2019

Solution
Simple Interest for 1 year = $\frac{1920}{2}$ = Rs. 960
Compound Interest - Simple Interest = 2112 - 1920 = Rs. 912
Interest on Rs. 960 for 1 year = Rs. 912
$\therefore$ Rate $= \frac{192 \times 10}{960 \times 1}$
= 20% per annum
Principal = $\frac{960 \times 100}{20 \times 1}$
= Rs. 4800
New rate = 24% per annum
S.I. = $\frac{4800 \times 2 \times 24}{100}$
= Rs. 2304
Compound Interest = $4800[(1 + \frac{24}{100})^2 - 1]$
= $4800[(1.24)^2 - 1]$
= Rs. 2580.48
Total interest = Rs. 4884.48