Question

Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal is

• A. 20920
• B. 20930
• C. 20950
• D. 209700

Answer 1

Answer: (A)

20920

Answer 2

Let the amount invested by Bimal be Rs. P.

Given that the interest incomes for both are equal. Therefore,

$\left[12000\left(1+\frac{8}{100​}\right)−12000\right]+[10000\left(1+\frac{3}{100}​\right)^2−10000]=P×\frac{7.5}{100}​$

Solving for P, we get$P=Rs. 20920.$