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ATQ, Interest earned by P after three years = 20000 × {(1 + 0.10)3 – 1} = 20000 × 0.331 = Rs. 6,620 Option I: Amount invested by M = 20000 + 2000 = Rs. 22,000 Interest earned by M after three years = 22000 × 0.11 × 3 = Rs. 7260 Difference between the interests earned by P and M = 7260 – 6620 = Rs. 640 So option I can be the answer. Option II: Amount invested by M = 20000 + 1500 = Rs. 21,500 Interest earned by M after three years = 21500 × 0.11 × 3 = Rs. 7095 Difference between the interests earned by P and M = 7095 – 6620 = Rs. 475 So option II can’t be the answer. Option III: Amount invested by M = 20000 + 3000 = Rs. 23,000 Interest earned by M after three years = 23000 × 0.11 × 3 = Rs. 7590 Difference between the interests earned by P and M = 7590 – 6620 = Rs. 970 So option III can’t be the answer. Option IV: Amount invested by M = 20000 + 500 = Rs. 20,500 Interest earned by M after three years = 20500 × 0.11 × 3 = Rs. 6765 Difference between the interests earned by P and M = 6765 – 6620 = Rs. 145 So option IV can be the answer.
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