Question

A certain bank offers 7% rate of interest for the first year and 11% for the second year on a certain fixed deposit scheme. If Rs 35,400 are received after 2 years in this scheme, what was the amount (in Rs) invested?

• A. 32,000
• B. 25,000
• C. 30,000
• D. 35,000

Answer 1

Answer:

C. 30,000

Let the total sum be P. [(P × 7 × 1)/100] + [(P × 11 × 1)/100] = 35400 — P ⇒ 0.18P + P = 35,400 ⇒ 1.18P = 35,400 ⇒ P = 30,000