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Question :

Anil invests Rs 22000 for 6 years in a scheme with 4% interest per annum, compounded half-yearly.
Separately, Sunil invests a certain amount in the same scheme for 5 years, and then reinvests the entire
amount he receives at the end of 5 years, for one year at 10% simple interest. If the amounts received by
both at the end of 6 years are equal, then the initial investment, in rupees, made by Sunil is

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Option D is the correct answer.

Explanatory Answer

Total amount received by Anil at the end of 6 years =22000(1.02)12
Total amount received by Sunil at the end of 6 years =x(1.02)101.1
Both the amounts are equal, 22000(1.02)12=x(1.02)101.1;
x=22000(1.02)2/1.1=200001.021.02=20808.

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