By Poonam

Verified by Ajay Kumar

Gaurav invested Rs. 'x' in a scheme offering 10% compound interest for three years. Prem invested Rs. 18,000 in a scheme offering 15% simple interest for four years. Find the interest earned by Gaurav if the interest earned by Prem is Rs. '2x − 1,200'.

  1. Rs. 1,215

  2. Rs. 1,779

  3. Rs. 1,560

  4. Rs. 1,986

Answer: D

Solution

Prem's simple interest = \(18000 \times 15 \times 4/100=10800\). Given \(2x-1200=10800\), so \(x=6000\). Gaurav's compound interest = \(6000[(1.10)^3-1]=1986\). The interest earned is Rs. 1,986.

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