Karan invested a principal amount *P* for 2 years in scheme A which offers 20\% per annum compound interest. The amount received after 2 years from scheme A is then reinvested in scheme B for 4 years at 25\% per annum simple interest. If the total interest earned from scheme B exceeds the original principal *P* by Rs 16,500, find the value of *P*.

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**Solution:**

1. Let the principal amount be *P*.

2. Scheme A offers compound interest at 20\% per annum for 2 years.
   - Amount after 2 years in scheme A:
   $$A = P 	imes \left(1 + \frac{20}{100}ight)^2 = P 	imes (1.2)^2 = P 	imes 1.44$$

3. This amount is reinvested in scheme B for 4 years at 25\% per annum simple interest.
   - Simple interest earned in scheme B:
   $$SI = 	ext{Principal} 	imes 	ext{Rate} 	imes 	ext{Time} = (1.44P) 	imes \frac{25}{100} 	imes 4 = 1.44P 	imes 1 = 1.44P$$

4. According to the problem, the interest earned from scheme B exceeds the original principal *P* by Rs 16,500:
   $$SI - P = 16,500$$
   Substitute the value of SI:
   $$1.44P - P = 16,500$$
   $$0.44P = 16,500$$

5. Solve for *P*:
   $$P = \frac{16,500}{0.44} = 37,500$$

**Answer:** Rs 37,500

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