Question 42

Ronnie invested Rs.P in a scheme A offering simple interest at 12% p.a. for two years. He invested the whole amount he received from scheme A, in another scheme B offering simple interest 15% p.a. for two years. If the difference between the interest earned from schemes A and B was Rs.264/, what is the value of P ?

Solution

let the initial amount invested be P .

So after two years with 12%per annum ,P will amount to = P + 0.24P = 1.24P

Now 1.24P is invested again at SI 15% for two years and hence it will give an interest amount of = ( 0.3 x1.24P) = 0.372 P

It is given that 0.372 P - 0.24 P =264

So P = 2000

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