A man invested Rs. 8000 in each of schemes A and B. Scheme A offers simple…

Concept

Simple Interest (SI) earned on a principal is given by SI = (P × R × T) / 100, where P is the principal, R is the annual rate of interest and T is the time in years. When the same person invests in more than one scheme, the total interest is simply the sum of the SI earned from each scheme, because simple interest on each principal is computed independently and does not compound.

Application

1. Scheme A: P = 8000, R = 9%, T = 3 years, so SI(A) = (8000 × 9 × 3) / 100 = 216000 / 100 = 2160.

2. Scheme B: P = 8000, R = 8%, T = 4 years, so SI(B) = (8000 × 8 × 4) / 100 = 256000 / 100 = 2560.

3. Total interest = SI(A) + SI(B) = 2160 + 2560 = 4720.

Cross-check

Verify each piece independently: 9% of 8000 is 720 per year, and over 3 years that is 720 × 3 = 2160; 8% of 8000 is 640 per year, and over 4 years that is 640 × 4 = 2560. Adding the two yearly-based totals again gives 2160 + 2560 = 4720, confirming the result.