Two different finance companies declare a fixed annual rate of interest on the amount invested by investors with them. The interest rate declared by these companies can vary from year to year depending on the variation in the country’s economy and the interest rate of the banks. The annual rate of interest offered by the two companies P and Q is shown in the graph below.
Study the graph and answer the question.
The annual percentage rate of interest offered by two finance companies P and Q over the years.
An investor invested a sum of Rs.4 lakhs in company Q in the years 2000. After one year, the entire amount was transferred to company P in 2001 as an investment for one year. What amount will the investor receive from company P?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option is 2 i.e. Rs.4,64,340
| Understanding | Application |
| Tricks |
SI for company Q in year 1 400000 × 9/100 × 1 = 36000 So Amount = 436000 |
| Now |
436000 for company P in the year 2001 = 436000 × 6.5/100 = 28340 |
| Hence |
Amount = 28340 + 436000 = 464340 |