Concept of “Simple Interest”-07 [IBPS-2014]

Question: The simple interest obtained when a certain sum of money is invested in scheme A for 3 years is Rs.38.8 less than the simple interest obtained when the same sum of money is invested in scheme B for 4 years. If the rates of interest offered by scheme A and scheme B are 14% pa and 12.5% pa respectively, how much money was invested in these schemes individually?

[Ans. (e) (Rs. 485)]

(a) Rs. 440 (b) Rs. 450 (c) Rs. 490 (d) Rs. 475 (e) Rs. 485 

Solution:

Detailed Explanation: A certain sum of money is invested in scheme at the rate of 14% pa for 3 years and the same capital is invested in scheme B at the rate of 12.5% for 4 years. That is, the interest obtained from scheme A is 42%, while interest obtained from scheme B is 50%. The difference is 8%, while the difference is given as Rs. 38.8.

So, 50% - 42% ≡ Rs. 38.88% [(12.5×4 - 14×3) % = (50-42) % = 8%]

Or, 8% ≡ Rs. 38.8

Or, 100% ≡? = Rs. 485 Ans.

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