IPMAT Indore 2025 · Quantitative Ability · Question 28

IPMAT Indore 2025 previous year question on Simple Interest and Compound Interest, with the answer and a step-by-step solution.

Simple Interest and Compound InterestArithmeticMultiple choiceMedium
Anindita invests a total of 1 lakh rupees distributed across three schemes, A, B and C, for a period of two years. These schemes offer an interest rate of 10%, 8% and 12% per annum, respectively, each compounded annually. If the initial investment amount in scheme A is 30000 rupees and the total interest earned from all three schemes during the first year is 10600 rupees, then the total interest earned, in rupees, from all three schemes for the second year is
  1. A
    10308
  2. B
    11748
  3. C
    22348
  4. D
    19708
Pick an option, then check.
Answer & solution

Answer: Option B

Step 1 — split the principal. A gets ₹30,000, so B and C share the rest:

B+C=100000-30000=70000

Step 2 — use the first-year interest.

\underset{3000}{\underset{⏟}{0.10\times 30000}}+0.08B+0.12C=10600 \Rightarrow 0.08B+0.12C=7600

Substituting B=70000-C:

0.08\left( 70000-C \right)+0.12C=7600

5600+0.04C=7600 \Rightarrow C=50000, B=20000

Step 3 — grow each principal by one year (this is what “compounded annually” means — year 2 earns interest on year 1’s closing balance):

Scheme

Rate

Start

After year 1

A

10%

30,000

33,000

B

8%

20,000

21,600

C

12%

50,000

56,000

Step 4 — second-year interest.

0.10\left( 33000 \right)+0.08\left( 21600 \right)+0.12\left( 56000 \right)

=3300+1728+6720=11748

Answer: Option 2 — ₹11,748

More Simple Interest and Compound Interest questions

All Simple Interest and Compound Interest PYQs →

Take this paper as a timed test
Real exam timing, instant score, rank and topic-wise analysis.

Practice timed →