Direction: These questions are based on the information give in the following graph.
-
Gopal invested an amount of Rs. 25,000 in company A in 2003 for one year. Thereafter in 2004 he invested the amount along with interest in Company 'B' for one year? What was the total amount of interest earned in the two years together?
-
- Rs. 6218.75
- Rs. 6800
- Rs. 6920
- Rs. 7200
Correct Option: C
Simple interest formula I = P x R x T where
P is the Principal amount of money to be invested at an Interest Rate R% per period for T Number of Time Periods.
Interests earned by Gopal from Company A in 2003 = 25000 x 12 x 1/100
Interests earned by Gopal from Company A in 2003 = 250 x 12 = 3000
Total amount in the end of year 2003 = 25000 + 3000 = 28000
Interests earned by Gopal from Company B in 2004 = 28000 x 14 x 1/100
Interests earned by Gopal from Company B in 2004 = 280 x 14
Interests earned by Gopal from Company B in 2004 = 3920
Total interests accrued by Gopal in 2003 and 2004 from company A and company B = 3000 + 3920
Total interests accrued by Gopal in 2003 and 2004 from company A and company B = Rs. 6920
