Shortcut Trick
Total annual interest = 9% of ₹6,00,000 = ₹54,000.
Sum of the first and third scholarships = ₹18,000 + ₹22,000 = ₹40,000.
Second scholarship = Total interest − Sum of first and third scholarships.
Second scholarship = 54,000 − 40,000 = ₹14,000.
∴ The correct answer is ₹14,000.
Alternate Method
Given:
Educational Fund Principal (P) = ₹6,00,000
Rate of Interest (R) = 9% per annum
Time (T) = 1 year
First scholarship = ₹18,000
Third scholarship = ₹22,000
Formula Used:
Simple Interest (I) = (P × R × T) ÷ 100
Fund = ₹6,00,000
9% Interest = ₹54,000
1st: ₹18k
2nd: ?
3rd: ₹22k
Second = 54k - (18k + 22k) = ₹14,000
Calculation:
⇒ Total annual interest = (6,00,000 × 9 × 1) ÷ 100
⇒ Total annual interest = 54,000
⇒ The sum of all three scholarships equals the total annual interest earned.
⇒ First scholarship + Second scholarship + Third scholarship = ₹54,000
⇒ 18,000 + Second scholarship + 22,000 = 54,000
⇒ Second scholarship + 40,000 = 54,000
⇒ Second scholarship = 54,000 − 40,000
⇒ Second scholarship = ₹14,000
∴ The correct answer is ₹14,000.
Additional Information
Simple Interest (SI) Formula
Simple Interest is strictly calculated on the initial principal amount throughout the entire period. Formula: I = (P × R × T) ÷ 100.
Concept of Compound Interest (CI)
Compound Interest is calculated on the principal as well as the accumulated interest from previous periods. Formula for amount: A = P(1 + R/100)T.
SI vs CI Difference
For the first year, both Simple Interest and Compound Interest remain the same. The difference for 2 years can be directly found using: Difference = P(R ÷ 100)2.