Study the following table carefully to answer the questions. Rate of Interest per cent per annum Offered by Five Companies on Deposits Different Schemes
Company D offers compound interest under Scheme II and simple interest under Scheme IV. Abhijit invested Rs. 25,000 with this company under Scheme IV and after one year switched over to Scheme II along with the interest for one more year. What is the total amount he will get at the end of two years ?
Solution
Rate of interest in company D under scheme IV = 9.5 %
Simple interest = $$\frac{P \times R \times T}{100}$$
= $$\frac{25,000 \times 9.5 \times 1}{100}$$
= Rs. $$2,375$$
Amount = Rs. $$(25,000 + 2,375)$$ = Rs. $$27,375$$
Rate of interest in company D under scheme II = 9 %
Total Amount = $$P (1 + \frac{R}{100})^T$$
= $$27,375 (1 + \frac{9}{100})^1$$
= $$27,375 \times \frac{109}{100} = Rs. 29,838.75$$
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