An equal sum is invested for seven years in scheme A offering simple interest at x% p.a. and in scheme B for two years offering compound interest at 10% p.a. (compounded annually). The interest earned from scheme A is thrice of the interest earned from scheme B. Had the ratio of interest been x – 4% simple interest per annum in scheme A, the difference in the interest earned from both the schemes would have been INR 700/-, What was the sum invested in each of the schemes?
INR 8,000/- INR 5,000/- INR 6,000/- INR 4,500/- INR 10,000/- Explanation: Let the sum invested in each of the schemes = INR P
According to question,
P×7×x/100 = 3p((1+10/100)2 -1)
7x/100 = 3(21/100)
x = 9
Now, New rate = x-4 = 9-4 = 5%
According to question,
P×7×5/100-P((1+10/100)2 -1) = 700
7P/20-21P/100 = 700
35P-21P/100 = 700
14P = 700×100
P = INR 5,000/-