Question

In two schemes, Rs. 2744 is invested in each scheme for 2 years at the rate of interest is (100/7)%. If the first scheme provides simple interest and second provides compound interest, then find the sum of compound interest and simple interest. 

1. Rs. 2,036
2. Rs. 4,054
3. Rs. 1,624
4. Rs. 2,044

Answer 1

Correct Answer - Option 3 : Rs. 1,624

Given:

Principal = Rs. 2744

Time = 2 years

Rate = (100/7)%

Concept used:

C.I. = P{(1 + R/100)^T – 1}

S.I. = (P × R × T)/100

S.I. → Simple interest

P → Principal

T → Time

R → Rate%

C.I. → Compound interest

Calculation:

S.I. = (P × R × T)/100 = (2,744 × (100/7) × 2)/100 = 784

C.I. = P{(1 + R/100)T – 1}

⇒ C.I. = 2,744(1 + 100/700)² – 2,744

⇒ C.I. = 2,744 × (8/7) × (8/7) – 2,744

⇒ C.I. = 3,584 – 2,744

⇒ C.I. = 840

C.I. + S.I. = Rs. (840 + 784) = Rs. 1,624

∴ The sum of C.I. and S.I. is  Rs. 1,624