Question 59

Anil invests Rs. 22000 for 6 years in a certain scheme with 4% interest per annum,Ā compounded half-yearly. Sunil invests in the same scheme for 5 years, and thenĀ reinvests the entire amount received at the end of 5 years for one year at 10%Ā simple interest. If the amounts received by both at the end of 6 years are same, thenĀ the initial investment made by Sunil, in rupees, is


Correct Answer: 20808

Solution

Anil invested 22000 for 6 years at 4% interest compounded half-yearly

=> Amount =Ā $$22000\left(1.02\right)^12$$

Let Sunil invest 'S' rupees for 5 years at 4% C.I. half-yearly and 10% S.I. for 1 additional year

=> Amount =Ā $$S\left(1.02\right)^{10}\left(1.1\right)$$

Given that the both amounts are equal

=>Ā $$22000\left(1.02\right)^{12}=S\left(1.02\right)^{10}\left(1.1\right)$$

=>Ā $$S=\dfrac{22000\left(1.02\right)^2}{1.1}=20808$$

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