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 option is 6000.
Step 1: Understand the given details for both accounts
Account A (Liam's deposit):
Principal () =
Rate of interest () = 12% p.a. (Simple Interest)
Time () = 3 years
Account B (Sophia's deposit):
Principal () =
Rate of interest () = 20% p.a. (Compound Interest)
Time () = 2 years
Total interest accumulated from both accounts = 3360 dollars
Step 2: Calculate simple interest from Account A ()
Using the simple interest formula:
Step 3: Calculate compound interest from Account B ()
Using the compound interest formula:
Step 4: Formulate the equation using total interest
Step 5: Compute Sophia's deposit
Sophia deposited dollars.
Hence, the amount deposited by Sophia is 6000 dollars.
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