Question

A man had rupees 75000. he invested rs 35000 in a company which pays him 9% interest per annum and he invested rest of the money in another company which pays him 9.5% interest per annum . find the total compound interest received by him after two years.

Answer 1

Answer:

Total interest received by him Rs 14544.5 in two years.

Explanation:

Case 1: He invested Rs 35000 in a company which pays 9% per annum for two years.

Principle (P) = 35000

Rate (r) = 0.09

Time (t) = 2

Compound Interest (CI)=?

Formula: $A=P(1+r)^t$

$A=35000(1+0.09)^2$

$A=35000\times 1.1881$

$A=41583.5$

CI=A-P

CI=41583.5-35000

Compound Interest for 9% investment = Rs 6583.5

Case 2: He invested Rs 40000 in a company which pays 9.5% per annum for two years.

Principle (P) = 40000

Rate (r) = 0.095

Time (t) = 2

Compound Interest (CI)=?

Formula: $A=P(1+r)^t$

$A=40000(1+0.095)^2$

$A=40000\times 1.199025$

$A=47961$

CI=A-P

CI=47961-40000 = 7961

Compound Interest for 9.5% investment = Rs 7961

Total compound interest received by him in two years = 7961+6583.5

Thus,  Total interest received by him Rs 14544.5 in two years.