A man deposited Rs 6000 in a bank at 5% P.a simple interest another man deposits Rs 5000 at 8% P.a Compounded interest. After 2 years the difference of their interest will be_________?

Question

Answer 1

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