CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

Amit invests in Fund A in which a sum of money doubles itself in two years.

Arjun invests in Fund B in which a sum of money triples itself in four years.

Which of the following statements are correct?
  1. Arjun's investment is better than that of Amit's .
  2. Amit's investment is better than that of Arjun's.
  3. Both the investments are equally good.
  4. None of the above


Solution

The correct option is C Both the investments are equally good.
Fund A:

Given, time = 2 years.
Let the sum invested be ₹ 100.
So, the Amount received after two years = ₹ 200.

We know that,
Principal + Interest = Amount.
Hence, Interest = Amount - Principal = ₹ (200-100) = ₹ 100.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by P× R× T100.

So, ₹ 100 = 100× R× 2100
Hence, R = 50%.

Fund B :

Given, time = 4 years.
Let the sum invested be ₹ 100.
So, the Amount received after 4 years = ₹ 300.

We know that,
Principal + Interest = Amount.
Hence, Interest = Amount - Principal = ₹ (300-100) = ₹ 200.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by P× R× T100.

So, ₹ 200 = 100× R× 4100
Hence, R = 50%.

Since, the rate of interest provided in both the funds are equal, Both the investments are equally good.

 

flag
 Suggest corrections
thumbs-up
 
0 Upvotes


Similar questions
View More


People also searched for
View More



footer-image