Question

Mr. Dua invested money in two schemes a and b offering compound interest at 8% per annum and 9%per annum respectively. If the total amount of interest accrued through two schemes together in two years was rs 4818.30 and the total amount invested was rs 27000.What was the amount invested in scheme a

Answer 1

If the price invest in scheme A at a rate of interest 8% be P

Total investments in scheme B at a rate of interest 9% = 27000 – P

In Compound Interest,

A=P(1+r/100)^n

A is Amount after n years, P is Principal, r is Rate of Interest and n is the number of years.

Amount due to scheme A=P(1+8/100)^2=1.082 P=1.1664 P-------------------- (A)

Amount due to scheme A=(27000−P)(1+9/100)^2=32078.70−1.1881 P------ (B)

Total Interest = Total Amount – Total Principal

4818.30 = (1.1664P + 32078.70 – 1.881P) – 27000

0.0217P = 260.40

P = 12000