A deposited Rs 6000 in a bank at 5% Per annum simple interest. B deposited Rs 5000 at 8% P.a Compound interest. After 2 years the difference between their interest will be:_________?

A. Rs 230
B. Rs 232
C. Rs 600
D. Rs 832

Explanation:

S.I = Rs (6000 × 5/100×2)=Rs 600

C.I = Rs [5000 × (1+8/100)2-5000]
= Rs [(5000 × 27/25 ×27/25)-5000]
=Rs (5832-5000)=Rs 832
(c.I) – (S.I) = Rs (832-600) = Rs 232

Correct Answer: Rs 232 ✔

Last Updated: February 07, 2020