By Poonam

Verified by Ajay Kumar

An amount of Rs. 'z' is invested in two different schemes—one offers simple interest at 13% p.a. for 4 years, and the other offers compound interest at 12% p.a. compounded annually for 2 years. If the total amount from the simple interest scheme exceeds the compound interest scheme by Rs. 78, then find the value of z.

  1. Rs. 287

  2. Rs. 293.66

  3. Rs. 245.5

  4. Rs. 299.88

Answer: B

Solution

Simple-interest amount = \(z(1+13 \times 4/100)=1.52z\). Compound-interest amount = \(z(1.12)^2=1.2544z\). Therefore, \(1.52z-1.2544z=78\), so \(z=78/0.2656\approx293.67\). The marked option is Rs. 293.66.

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