Mohan's Compound Interest Investment

Question

Mohan has some money (₹M) that he divides in the ratio of 1:2. He then deposits the smaller amount in a savings scheme that offers a certain rate of interest, and the larger amount in another savings scheme that offers half of that rate of interest. Both interests compound yearly. At the end of two years, the total interest earned from the two savings schemes is ₹830. It is known that one of the interest rates is 10% and that Mohan deposited more than ₹1000 in each saving scheme at the start. Wh

Accepted Answer

B. Let smaller amount = $x$, larger amount = $2x$. Total amount $M = 3x$. Since $x > 1000$, $M > 3000$. Case 1: Smaller amount rate = 10%, Larger amount rate = 5%. Interest from smaller = $x(1.10^2 - 1) = 0.21x$. Interest from larger = $2x(1.05^2 - 1) = 2x(0.1025) = 0.205x$. Total interest = $0.415x = 830 \implies x = 2000$. Since $x = 2000 > 1000$, this is valid. $M = 3x = 6000$. Case 2: Larger amount rate = 10%, Smaller amount rate = 20%. Total interest = $0.44x + 0.42x = 0.86x = 830 \implies x = 965.11 < 1000$ (invalid). Thus, $M = 6000$.

Answer

7500

Answer

6000

Answer

To solve this, the other interest rate must also be given.

Answer

4500

Answer

12000

Mohan's Compound Interest Investment

Explanation

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