SOLUTION: James invested ₹ 600 on simple interest and ₹ 1200 on compound interest for two years at the same rate of interest of 20% per annum. What is the total interest earned?

Algebra ->  Test -> SOLUTION: James invested ₹ 600 on simple interest and ₹ 1200 on compound interest for two years at the same rate of interest of 20% per annum. What is the total interest earned?      Log On


   

Question 1143345: James invested ₹ 600 on simple interest and ₹ 1200 on compound interest
for two years at the same rate of interest of 20% per annum. What is the total
interest earned?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
You can use the formulas:
+A+=+P%5B1%5D%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+ ( compound interest )
+I+=+P%5B2%5D%2Ar%2At+ ( simple interest )
---------------------------------------
+P%5B1%5D+=+1200+
+P%5B2%5D+=+600+
+r+=+.2+
+t+=+2+
+n+=+1+
-----------------------
+A+=+1200%2A%28+1+%2B+.2%2F1+%29%5E%28+1%2A2%29+
+A+=+1200%2A1.2%5E2+
+A+=+1200%2A1.44+
+A+=+1728+
+I%5B1%5D+=+A+-+P+
+I%5B1%5D+=+1728+-+1200+
+I%5B1%5D+=+528+
-------------------------
+I%5B2%5D+=+600%2A.2%2A1+
+I%5B2%5D+=+120+
------------------------------
+I%5B1%5D+%2B+I%5B2%5D+=+528+%2B+120+
+I%5B1%5D+%2B+I%5B2%5D+=+648+
The total interest is 648
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