Question

Raj invested a certain sum of money in two schemes. The first scheme offers a simple interest of 10% per annum, and the second scheme offers a simple interest of 12% per annum. If the total interest earned from both schemes after 3 years is Rs. 1980, and the ratio of the amounts invested in the two schemes is 5:4, what is the amount invested in the second scheme?

• A. 2500
• B. 2300
• C. 2700
• D. 2900

Answer 1

Answer: (C)

2700

Answer 2

Let the amounts invested in the first and second schemes be 5x and 4x respectively.

Interest from the first scheme:

Principal (P1) = 5x

Rate (R1) = 10%

Time (T) = 3 years

Simple Interest $SI1 = \frac{P1 \times R1 \times T}{100} = \frac{5x \times 10 \times 3}{100} = 1.5x$

Interest from the second scheme:

Principal (P2) = 4x

Rate (R2) = 12%

Time (T) = 3 years

Simple Interest $SI2 = \frac{P2 \times R2 \times T}{100} = \frac{4x \times 12 \times 3}{100} = 1.44x$

Total interest $= SI1 + SI2 = 1.5x + 1.44x = 2.94x$

Given, total interest = Rs. 1980

So, 2.94x = 1980

=> $x = \frac{1980}{2.94} = 675$

Amount invested in the second scheme = $P2 = 4x = 4 \times 675 = \text{Rs. 2700}$