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A person invested a sum of Rs. 8000 at the rate of 12.5% annually at simple interest for 3 years after getting interest from an amount, he again invested total amount including simple interest at the rate of 20% compounded annually for the same years. Find the total amount.
Rs. 19,800
Rs. 19008
Rs. 18900
Rs. 18009
None of these
- Initial Investment at Simple Interest:
- Principal = Rs. 8000
- Rate = 12.5%
- Time = 3 years
- Calculate Simple Interest:
- Simple Interest = Principal × Rate × Time / 100
- Simple Interest = 8000 × 12.5 × 3 / 100 = Rs. 3000
- Total Amount after Simple Interest:
- Total = Principal + Simple Interest = 8000 + 3000 = Rs. 11000
- Reinvested at Compound Interest:
- New Principal = Rs. 11000
- Rate = 20%
- Calculate Compound Interest Amount:
- Total Amount = New Principal × (1 + Rate/100)^Time
- Total Amount = 11000 × (1 + 20/100)^3
- Total Amount = 11000 × 1.2^3
- Total Amount = 11000 × 1.728
- Total Amount = Rs. 19008
- Correct Answer:
- Option 2: Rs. 19008
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By: Parvesh Mehta ProfileResourcesReport error
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