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A sum of Rs 26,125 is invested partly in scheme A for 4 years and partly in scheme B for 2 years. Scheme A ofers 8% per annum simple interest whereas scheme B ofers 20% per annum compound interest. Both the schemes earn equal amount of interests. How much money was invested in scheme B?
Rs 12,500
Rs 15,125
Rs 13,625
Rs 11,000
Rs 10,250
- The sum of Rs 26,125 is split between two schemes.
- Scheme A offers 8% simple interest for 4 years.
- Interest from Scheme A = Principal × Rate × Time / 100.
- Scheme B offers 20% compound interest for 2 years.
- Interest from Scheme B = Principal × (1 + Rate/100)^Time - Principal.
- Both schemes earn equal interest.
Let's denote:
- Amount in Scheme A as A.
- Amount in Scheme B as B.
Equating the interests:
1. Interest from Scheme A: \( A \times \frac{8 \times 4}{100} = A \times 0.32 \)
2. Interest from Scheme B: \( B \times (1 + \frac{20}{100})^2 - B = B \times 1.44 - B = B \times 0.44 \)
Set them equal: \( A \times 0.32 = B \times 0.44 \)
We know: \( A + B = 26,125 \)
Calculating:
$$
A = 26,125 - B \\
(26,125 - B) \times 0.32 = B \times 0.44 \\
8,360 - 0.32B = 0.44B \\
8,360 = 0.76B \\
B = \frac{8,360}{0.76} \approx 11,000
- Option 4 (Rs 11,000) is correct.
- .
By: Parvesh Mehta ProfileResourcesReport error
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