Answer the following question based on the information provided.
Liam deposited dollars in account A for three years at a rate of 12% p.a. simple interest, whereas Sophia deposited dollars in account B for two years at 20% p.a. compound interest. Find the amount deposited by Sophia if the total interest accumulated from both accounts is 3360 dollars.
Correct Answer :
6000
Solution :
The correct answer is 6000.
Step 1: Understand the given details
Let Liam's initial deposit in Account A be dollars.
Liam's account conditions:
- Principal () =
- Time () = 3 years
- Rate of interest () = 12% per annum simple interest
Sophia's account conditions:
- Principal () = dollars
- Time () = 2 years
- Rate of interest () = 20% per annum compound interest
Total interest earned from both accounts combined = 3360 dollars.
Step 2: Calculate the Simple Interest from Account A
The formula for Simple Interest (SI) is:
Substituting the values for Account A:
Step 3: Calculate the Compound Interest from Account B
The formula for Compound Interest (CI) over 2 years is:
Substituting the values for Account B:
Step 4: Form the total interest equation and solve for
Total Interest =
Step 5: Find the amount deposited by Sophia
The amount deposited by Sophia is dollars.
Thus, the amount deposited by Sophia is 6000 dollars.
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