A person invests in Scheme A offering compound interest at per annum compounded annually for years. The entire maturity amount from Scheme A is then invested in Scheme B offering simple interest at per annum for years. What is the total interest earned across both investments combined?

Answer and explanation

Correct answer: A. Rs. 18,108

  1. Step 1: Calculate the maturity amount in Scheme A with principal at compound interest for years: .
  2. Step 2: Find the interest from Scheme A: .
  3. Step 3: Compute simple interest in Scheme B on principal at for years: .
  4. Step 4: Add the interest earned from both schemes: .
Answer
Rs. 18,108.

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