|A) Rs.2543||B) Rs.2534|
|C) Rs.2546||D) Rs.2750|
Shawn received an extra amount of (Rs.605 – Rs.550) Rs.55 on his compound interest paying bond as the interest that he received in the first year also earned interest in the second year.
The extra interest earned on the compound interest bond = Rs.55
The interest for the first year =550/2 = Rs.275
Therefore, the rate of interest == 20% p.a.
20% interest means that Shawn received 20% of the amount he invested in the bonds as interest.
If 20% of his investment in one of the bonds = Rs.275, then his total investment in each of the bonds = = 1375.
As he invested equal sums in both the bonds, his total savings before investing = 2 x 1375 =Rs.2750.