₹4,000 is given at 5% per annum for one year and interest is compounded half yearly. ₹2,000 is given at 40% per annum compounded quarterly for 1 year. The total interest received is nearest to:

₹1,130.70

In first case ,

Principal = 4000 , rate = 5% , time = 1 year and interest is compounded half yearly .

So, actual rate of interest = 2.5%

Amount = P$(1 \;+\; \frac{R}{100})^t$

Compound interest = Amount - Principal

= 4000 × \(\frac{102.5}{100}\) × \(\frac{102.5}{100}\) - 4000

= 202.5

In second case,

Principal = 2000 , rate = 20% , time = 1 year and interest is compounded quaterly .

So, actual rate of interest = 10%

Amount = P$(1 \;+\; \frac{R}{100})^t$

Compound interest = Amount - Principal

= 2000 × \(\frac{110}{100}\) × \(\frac{110}{100}\) × \(\frac{110}{100}\) × \(\frac{110}{100}\) - 2000

= 2982.2 - 2000

= 982.2

Total compound interest = 202.5 + 982.2

= Rs. 1130.70