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:

Answer: Option C

Solution

Answer: Option C

Solution:

$$\mathbf{Case}-\mathbf{I}$$

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