An investor invested Rs. 5 lakhs in Company Q in 1996. Af...
Two different finance companies declare fixed annual rate of interest on the amounts invested with them by investors. The rate of interest offered by these companies may differ from year to year depending on the variation in the economy of the country and the banks rate of interest. The annual rate of interest offered by the two Companies P and Q over the years are shown by the line graph provided below.
Annual Rate of Interest Offered by Two Finance Companies Over the Years.
An investor invested Rs. 5 lakhs in Company Q in 1996. After one year, the entire amount along with the interest was transferred as investment to Company P in 1997 for one year. What amount will be received from Company P, by the investor?
Rs. 594,550
Rs. 580,425
Rs. 577,800
Rs. 577,500
Correct answer is B
Amount received from Company Q after one year on investment of Rs. 5 lakhs in the year 1996
= Rs. [5 + (6.5% of 5)] lakhs
= Rs. 5.325 lakhs.
Amount received from Company P after one year on investment of Rs. 5.325 lakhs in the year 1997
= Rs. [5.325 + (9% of 5.325)] lakhs
= Rs. 5.80425 lakhs
= Rs. 5,80,425.
Similar Questions
The ratio of Hindustan Motors production in 2003 - 2004 to Honda's production in 2002 - 2003 is ...
What is the difference between the total productions of the two Companies in the given years ? ...
The difference in the sales of cellular phones for the years 1997 and 1999 is ? ...