Discussion Forum

Sathish invests Rs. 35,500 in a scheme which earns him simple interest at 15% p.a for 2 years. At the end of 2 years he reinvests the total amount at 20% p.a. What will be the total interest earned by Satish over the principal at the end of 5 years ?

Answer:

Explanation:

$SI=$ $\frac{35,500\times 15}{100\times 2}$ $=10,650$

$A$ $=35,500+10,650$ $=46,150$

$CI$  for $3$ yrs  $= 46,150\left[\left(1+\frac{20}{100}\right)^{3}\right]$ $=33,597.20$

$\therefore$ Total interest $=10,650 + 33,597.20$ = 44,247.20