Question

Sandeep invested Rs. 2500 in a scheme offering 20% per annum simple interest. Had he invested the same amount in another scheme offering 25% simple interest for two more years than the first scheme, he would have received Rs. 1500 more interest. Find the time period of investment in the second scheme.

• A. 1 year
• B. 3 years
• C. 2 years
• D. 4 years
• E. None of these

Answer 1

The correct option is D 4 years

Let the time period in the first scheme be t years.

$\frac{2500\times 25\times (t+2)}{100}-\frac{2500\times 20\times t}{100}=1500$

⇒ 125t + 1250 = 1500
⇒ t = 2 years
Time period for second scheme = t + 2 = 4 years