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    Rudra invested in scheme R for 4 years. If scheme R offers simple interest at the rate of 7 p.c.p.a. for the first two years and then compound interest at the rate of 10 p.c.p.a. (compounded annually) for the third and fourth year, what will be the interest earned by Rudra after 4 years ?

  • INR 13,548/-
  • INR 12,096/-
  • INR 12,242/-
  • INR 12,364/-
  • INR 11,886/-
  • Explanation:

    Scheme

    Gautam and Rudra

    Gautam

    Rudra

    M

    84000

    45360

    38640

    N

    72000

    43200

    28800

    O

    32000

    12800

    19200

    P

    60000

    18000

    42000

    Q

    64000

    26880

    37120

    R

    96000

    61440

    34560

    The interest earned by Rudra after 4 years

    = 34560×7×2/100 + 34560 (1+10/100)2-34560

    = 34560×7×2/100+34560(121-100/100)

    = 34560/100(14+21)

    = INR 12096/-