Practicing Success
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? |
4218.75 4412.85 4218.50 4118.25 |
4218.75 |
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 |