Question

Prem invested a certain sum in Scheme A, which offers simple interest at 8% per annum for 4 years. He also invested Rs. 2000 in Scheme B, which offers compound interest (compounded annually) at 20% per annum for 2 years. If the interest earned from Scheme A is $\frac{17}{11}th$of the interest from Scheme B, what is the sum invested in Scheme A?

• A. 4000
• B. 3000
• C. 4500
• D. 4250
• E. 5000

Answer 1

The correct option is D 4250

Let the sum invested in scheme $A=P$
$\therefore$ According to the question,
$\frac{P\times 8\times 4}{100}=\frac{17}{11}\times 200\times \frac{44}{100}\Rightarrow \frac{32P}{100}=\frac{17}{11}\times 880\Rightarrow P=\frac{17\times 880\times 100}{32\times 11}\Rightarrow P=Rs.4250$