Question

Abraham invested Rs.25,000 at 15% per annum for three years interest compounded annually and Rs.25,000 at 10% Per annum for one 1 1/2 years interest compounded half yearly. Find the difference between the interests

Answer 1

Answer:

Correct option is

C

Rs. 16,537.50

P= Rs. 15000; R=10% p.a =5% per half-year; T=1 year =2 half-years.

∴ Amount =[15000×(1+

100

5

)

2

]

= Rs. (15000×

20

21

×

20

21

)

=16,537.50