Riya 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 25% p.a. The compound interest after two years on the sum invested in scheme A was Rs.3300 . 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 1
Principal is same for both scheme
For scheme A
rate = 20%
CI for 2 year = 20 + 20 + \(\frac{20×20}{100}\) = 44%
44% → 3300
1% → 75
100% → 7500
(Principal) For scheme B,
rate = 25%
CI for 2 year = 25 + 25 +\(\frac{25×25}{100}\) = 56.25%
=\(\frac{7500×56.25}{100}\) = 4218.75