Q. Samar invested some amount of money in the share market and stock market. Find the total interest earned by Samar from the Stock market and Share market together.
Statement I: Difference between the compound interest and simple interest earned on Rs. 8000 at (2P – 10) % per annum is Rs. 320.
Statement II: Samar invested Rs. 12000 in share market for three years, earning compound interest at (P – 5) % per annum.
Statement III: Samar invested Rs. 2560 in the stock market for four years, earning simple interest at (P + 5) % per annum.
A. Statement I and II only
B. Statement I and III only
C. Statement II and III only
D. All three statements together are not sufficient to answer the question
E. None of these
Ans: None of these
Sol:
We need to calculate the total interest earned by Samar from the Stock market and Share market.
We have information about the stock market and share market in statement II and III individually.
So, this is for sure we need II and III together.
We also need a rate of interest, which can be easily calculated from statement I.
So, we need to combine all three statements together.
From (I + II + III)
Difference between compound interest and simple interest earned on Rs. 8000 at (2P – 10)
% per annum is Rs. 320.
So,
8000 x (rate of interest/100)2 = 320
Rate of interest = 20%
So
2P – 10 = 20
P = 15%
Samar invested Rs. 12000 in share market for three years, earning compound interest at (P – 5)
% per annum.
Compound interest earned = 12000 x (1.13 – 1) = Rs. 3972
Samar invested Rs. 2560 in the stock market for four years, earning simple interest at (P + 5) %
per annum.
Simple interest earned = 2560 x 20% x 4 = Rs. 2048
Total interest earned = 3972 + 2048 = Rs. 6020
Hence the answer is option E
