📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A person 'P' invests ₹24,000 at

    a simple interest rate of 15% per annum for 2 years, while Jay invests the same amount, ₹24,000, at a compound interest rate of 15% per annum (compounded annually) for 2 years. Calculate the difference between the interest earned by both.
    A Rs.740 Correct Answer Incorrect Answer
    B Rs.500 Correct Answer Incorrect Answer
    C Rs.640 Correct Answer Incorrect Answer
    D Rs.540 Correct Answer Incorrect Answer

    Solution

    ATQ, Difference between interests earned on investing Rs. 'p' each on simple interest at 'r'% p.a. and compound interest at 'r'% p.a. compounded annually for 2 years = p × (r2 /10,000) So, required difference = 24,000 × (152 /10,000) = (24/10) × 225 = Rs. 540

    Practice Next
    More Simple and compound interest Questions
    ask-question