Exams › IBPS PO › General Awareness

Manav invested Rs. X in Scheme A that offers simple interest at 25% per annum. After two years, he withdrew all his money and invested 80% of it in Scheme B that offers compound interest at 20% per annum for another two years. If the difference between the interest obtained from both schemes is Rs. 700, find the value of X.

1. Rs. 20000
2. Rs. 25000
3. Rs. 15000
4. Rs. 30000

Correct answer: Rs. 25000

Solution

Interest from Scheme A for 2 years at 25% simple interest is \(0.5X\). The amount after 2 years is \(1.5X\), and 80% of this, i.e. \(1.2X\), is invested in Scheme B. Compound interest for 2 years at 20% on \(1.2X\) is \(1.2X \times (1.44-1)=0.528X\). The difference is \(0.528X-0.5X=0.028X=700\), so \(X=25000\).

Related IBPS PO General Awareness questions

• What would be the compound interest obtained on an amount of ₹3,000 at the rate of 8% per annum after 2 years?
• A person invested ₹P in a scheme that offers 19.8% interest, compounded annually for two years and two days. If the amount received from this scheme is reinvested at the same rate for the same period in the same scheme, then he will receive ₹792 as interest. Find the approximate value of P.
• The difference between compound interest and simple interest on a certain sum for 2 years at the rate of 25% is ₹25. Find the principal and the ratio of compound interest to simple interest.
• Anurag invested ₹15,000 in Scheme A at simple interest for two years at 15% per annum. If he again invests the total amount received from Scheme A in Scheme B at compound interest at 20% per annum for two years, then find the interest obtained in Scheme B.
• Mohan invested a sum at the rate of 15% simple interest per annum for two years and received a total amount of ₹9984. He invested the same amount at the rate of \(x\)% per annum at compound interest for two years and received ₹6500 more interest than the simple interest. Find the value of \(x\) approximately.
• A sum becomes eight times in 3 years compounded annually. In how much time will it become sixteen times at the same rate?

⚔️ Practice IBPS PO General Awareness free + battle 1v1 →