Question

Anand invested an amount of ₹ 25,000 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 4% p.a. respectively. If the total amount of simple interest earned in a year be ₹ 5000, what was the amount invested in Scheme A?

• A. ₹ 40,000
• B. ₹ 20,000
• C. ₹ 80,000
• D. ₹ 60,000

Answer 1

The correct option is A ₹ 40,000

Let the sum invested in scheme A be ₹ x.
Hence, the sum invested in scheme B = ₹ (25,000-x).

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 $\frac{P\times R\times T}{100}$.

According to the question,

$\frac{x\times 14\times 1}{100}+\frac{(25,000-x)\times 4\times 1}{100}=₹5000$

$\frac{14x}{100}+\frac{4(25000-x)}{100}$ = 5000

$\frac{14x-4x+100000}{100}$ = 5000

$10x+100000=5000\times 100$
$10x=500000-100000$
$x=40,000$

Hence, the sum invested in scheme A = ₹ x = ₹ 40,000.