Question

DIRECTIONS for the question: Solve the following question and mark the best possible option.

Som invested in scheme B offering simple interest @5% p.a., was 80% more than the sum invested in scheme A offering compound Interest (compounded annually) @10% p.a. If at the end of two years, the total amount received from both the schemes together was Rs. 6,360, what was the difference between the sum invested in both the schemes?

1. 1800
2. 1500
3. 1595
4. 1650
5. 2000

Answer 1

Correct Answer - Option 3 : 1595

Calculation:

Let be assume sum invested in scheme A is X and sum invested in scheme B 1.8X

⇒ Total amount received by scheme A = X × (1 + 10/100)² = X × (11/10)² = 121X/100 = 1.21X

⇒ Total amount received by scheme B = 1.8X + {(1.8X × 2 × 5)/100} = 1.98X

⇒ Total amount received by both scheme = 1.21X + 1.98X = 3.19X

⇒ 3.19X = 6360

⇒ X = 1993.73

⇒ The difference between sum invested in both scheme = 1.8X - X = 0.8X

⇒ 0.8X = 0.8 × 1993.73 = 1594.98 ≈ 1595

∴ The required result will be 1595.

Total amount = Principle + interest