Amrita invested equal sums of money at compound interest under two schemes A and B. Under scheme A, the interest rate was 20% per annum and under scheme B, the interest rate was 15% p.a. The compound interest after two years on the sum invested in scheme A was Rs. 2200. How much is the interest earned under scheme B after two years, if the interest is compounded annually in both schemes?
Answer & explanation
Correct answer: option 4
Principal is same for both scheme
For scheme A
r = 20%
CI for 2 year = 20 + 20 + \(\frac{20 × 20}{100}\) = 44%
x50
44% → 2200
100% → 5000 (Principal)
For scheme B, rate = 15%
CI for 2 year = 15 + 15 + \(\frac{15 × 15}{100}\) = 32.25%
= \(\frac{5000 × 32.25}{100}\) = 1612.5