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Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?
- a)Rs. 17,697
- b)Rs. 15,017
- c)Rs. 23,597
- d)Rs. 24,247
- e)None of these
Correct answer is option 'A'. Can you explain this answer?
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Saurabh invests Rs. 25,500 in a scheme which earns him simple interest...
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Saurabh invests Rs. 25,500 in a scheme which earns him simple interest...
Calculating simple interest for 2 years:
Given, Principal amount (P) = Rs. 25,500, Rate of interest (R) = 20% per annum, Time (T) = 2 years
Simple Interest (SI) = P * R * T / 100
SI = 25500 * 20 * 2 / 100 = Rs. 10,200
Calculating amount after 2 years:
Amount = Principal + Simple Interest
Amount = 25500 + 10200 = Rs. 35,700
Calculating compound interest for the next 2 years:
Principal amount = Rs. 35,700, Rate of interest = 10% per annum, Time = 2 years
Using the formula for compound interest: A = P(1 + r/n)^(nt)
Where, A = Final amount, P = Principal amount, r = rate of interest, n = number of times interest applied per time period, t = time period
Final amount (A) = 35700(1 + 0.10/1)^(1*2) = Rs. 35700 * (1.10)^2 = Rs. 43561
Calculating total interest earned over 4 years:
Total interest earned = Amount after 4 years - Principal amount
Total interest = Rs. 43561 - Rs. 25500 = Rs. 18061
Therefore, the total interest earned by Saurabh over the principal amount at the end of 4 years is Rs. 18,061.
The correct option in this case is not listed in the given options, so there seems to be an error in the options provided.
Given, Principal amount (P) = Rs. 25,500, Rate of interest (R) = 20% per annum, Time (T) = 2 years
Simple Interest (SI) = P * R * T / 100
SI = 25500 * 20 * 2 / 100 = Rs. 10,200
Calculating amount after 2 years:
Amount = Principal + Simple Interest
Amount = 25500 + 10200 = Rs. 35,700
Calculating compound interest for the next 2 years:
Principal amount = Rs. 35,700, Rate of interest = 10% per annum, Time = 2 years
Using the formula for compound interest: A = P(1 + r/n)^(nt)
Where, A = Final amount, P = Principal amount, r = rate of interest, n = number of times interest applied per time period, t = time period
Final amount (A) = 35700(1 + 0.10/1)^(1*2) = Rs. 35700 * (1.10)^2 = Rs. 43561
Calculating total interest earned over 4 years:
Total interest earned = Amount after 4 years - Principal amount
Total interest = Rs. 43561 - Rs. 25500 = Rs. 18061
Therefore, the total interest earned by Saurabh over the principal amount at the end of 4 years is Rs. 18,061.
The correct option in this case is not listed in the given options, so there seems to be an error in the options provided.
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Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer?
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Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer?.
Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Saurabh invests Rs. 25,500 in a scheme which earns him simple interest at the rate of 20 p.c.p.a. for two years. At the end of two years, he reinvests the principal amount plus interest earned in another scheme which earns him compound Interest at the rate of 10 p.c.p.a. What will be the total interest earned by Saurabh over the principal amount at the end of 4 years?a)Rs. 17,697b)Rs. 15,017c)Rs. 23,597d)Rs. 24,247e)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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