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Three different finance companies declare fixed annual rate of interest on the amount invested with them by investors. The rate of interest offered by these companies may differ from year to year depending on the variation in the economy of the country and the banks rate of interest. The annual rate of interest offered by the three companies P, Q, and R over the year are shown by the line-graph provided below.
              Annual Rate of Interest Offered by three Finance
                      Companies Over the Years
An investor invested Rs. 5 lakhs in Company Q in 2006. After one year, the entire amount along with the interest was transferred as investment to Company P in 2007 for one year. What amount will be received from Company P, by the investor?
Amount received from Company Q after one year on investment of Rs. 5 lakhs in the year 2006
= Rs. [5 + (6.5% of 5)] lakhs
= Rs. 5.325 lakhs.
Amount received from Company P after one year on investment of Rs. 5.325 lakhs in the year 2007
= Rs. [5.325 + (9% of 5.325)] lakhs
= Rs. 5.80425 lakhs
= Rs. 5,80,425.
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