Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

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?

Options:

4218.75

4412.85

4218.50

4118.25

Correct Answer:

4218.75

Explanation:

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