Question

Hari Lal and Hari Prasad have equal amounts. Hari Lal invested all his amount at 10% compounded annually for 2 years and Hari Prasad invested 1/4 at 10% compound interest (annually) and rest at r% per annum at simple interest for the same 2 years period. The amount received by both at the end of 2 years is same. What is the value of r?

• A. 14%
• B. 12.5%
• C. 10.5%
• D. 11%

Answer 1

The correct option is C 10.5%

Let the amount of investment with each one be Rs 400, then
Hari Lal Hari Prasad
$\left[400\right(1.1{)}^2]=[100\left(1.1{)}^2\right]+[300+\frac{300\times r\times 2}{100}]$
$\Rightarrow r=10.5\%$