Rs. 4,000 is given at 5% per annum for one year and interest is compounded half yearly. Rs. 2,000 is given at 40% per annum compounded quarterly for 1 year. The total interest received is nearest to:

Solution (By Examveda Team)

$${\bf{Case - I}}$$

$$\eqalign{ & = 100 + 100 + 2.5 = 202.5 \cr & {\bf{Case - II}} \cr & 2000 \cr & {\text{Rate of interest}} = \frac{{40}}{4} = 10\% \cr & 2000 \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} \cr & = \frac{{14641}}{5} \cr & = 2928.2 \cr & {\text{Interest}} = 2928.2 - 2000 = 928.2 \cr & {\text{The total interest}} = 202.5 + 928.2 \cr & = 1130.7{\text{ Answer}} \cr} $$