A man invests ₹7,000 at 8% per annum simple interest for 2 years and ₹10,000 at compound interest at the same rate for the same period, compounded annually. What will be the total interest and the total amount(in ₹) respectively, on maturity?

2,784 and 19,784

In first case ,

Amount = Interest + Principal

Simple interest = \(\frac{P ×  R × T}{100}\)

Amount = \(\frac{7000 ×  8 × 2}{100}\) + 7000

= Rs. 8120

In 2 nd case ,

With compound interest ,

Amount = P[ 1 + \(\frac{Rate}{100}\) ]²

= 10000 × [ 1 + \(\frac{ 8 }{100}\) ]²

= 10000 ×  \(\frac{ 27 }{25}\) ×  \(\frac{ 27 }{25}\)

= Rs. 11664

So, Total amount after 2 years = 11664 + 8120 = 19784

Total interest earned in 2 years = 19784 - ( 10000 + 7000 )

=Rs.2784

Ans :-  2784, 19784