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Arunavo invested total sum of Rs. 16000 in two schemes (A and B) for two years. Scheme A offers compound interest (compounded annually) at the rate of 10% per annum and scheme B offers simple interest at the rate of 12% per annum. If the total interest ea

Arunavo invested total sum of Rs. 16000 in two schemes (A and B) for two years. Scheme A offers compound interest (compounded annually) at the rate of 10% per annum and scheme B offers simple interest at the rate of 12% per annum. If the total interest earned by him from both the schemes after two years is Rs. 3504. How much money (principle) did he invest in scheme B?
1). Rs. 4800
2). Rs. 4200
3). Rs. 4600
4). Rs. 4400

This Question has 1 answers.

\r\n Solution\r\n

Let x be the amount invested in scheme A and y be amount invested in amount invested in scheme B.
\r\nx+y = 16,000
\r\n(x(1+.1)^2 - x) + y*2*0.12 = 3504
\r\n0.21x + 0.24y = 3504

\r\nSolving the above equation we get,
\r\nx = 11,200
\r\ny = 4800
\r\nHe invested Rs.4800 in scheme B.

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