Question

Mr. Sharma invested an amount of Rs. 20,000 divided in two different schemes A and B at the simple interest rate of 20% p.a. and 10% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 5000. what was the amount invested in Scheme B?

1. 18000
2. 15000
3. 16000
4. 14000

Answer 1

Correct Answer - Option 2 : 15000

Given:

Mr. Sharma invested an amount of Rs.20,000 divided in two different schemes A and B at the simple interest rate of 20% p.a. and 10% p.a. respectively

The total amount of simple interest earned in 2 years be Rs. 5000

Formula used:

Simple interest = (Principal amount × rate of interest × time)/100

Calculation:

Let the sum invested in Scheme A be Rs. P and that in Scheme B be Rs. (20000 - P)

According to question.

(P × 2 × 20)/100 + [(20000 – P) × 2 × 10]/100 = 5000

⇒ 40P + 400000 – 20P = 500000

⇒ 20P = 500000 – 400000

⇒ 20P = 100000

⇒ P = 5000

So, Amount of scheme B is

⇒ 20000 – 5000

⇒ 15000

∴The amount invested in Scheme B is 15000