Question

Rudra invested in scheme R for 4 yr. If scheme R offers simple interest @ 7 pcpa for the first 2 yr and then compound interest @ 10 pcpa (compounded annually) for the 3rd and 4th year, what will be the interest earned (Rs) by Rudra after 4 yrs?

• A. 13548
• B. 12096
• C. 12242
• D. 12364
• E. 11886

Answer 1

The correct option is B 12096

Amount invested by Rudra in scheme
$R=\frac{96000\times 36}{100}=960\times 36=Rs.34560$

Now, simple interest for 2 yr
$=\frac{34560\times 7\times 2}{100}=Rs.4838.4$

Compound interest for 2 yr
$=\frac{34560\times 21}{100}=Rs.7257.6$

$\therefore$ Sum = 4838.4 + 7257.6 = Rs. 12096