1. A person invested equal amounts in two schemes A and B at the same rate of interest. Scheme A offers simple interest while scheme B offers compound interest. After two years he got Rs. 1920 from scheme A as interest and Rs. 2112 from scheme B. If the rate of interest is increased by 4%, what will be the total interest after two years from both schemes?
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- By: anil on 05 May 2019 01.14 am
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Compound Interest - Simple Interest = 2112 - 1920 = Rs. 912
Interest on Rs. 960 for 1 year = Rs. 912
$$ herefore$$ Rate $$= frac{192 imes 10}{960 imes 1}$$
= 20% per annum
Principal = $$frac{960 imes 100}{20 imes 1}$$
= Rs. 4800
New rate = 24% per annum
S.I. = $$frac{4800 imes 2 imes 24}{100}$$
= Rs. 2304
Compound Interest = $$4800[(1 + frac{24}{100})^2 - 1]$$
= $$4800[(1.24)^2 - 1]$$
= Rs. 2580.48
Total interest = Rs. 4884.48