Question
Person K invested Rs. 4500 at a
compound interest rate of 20% per annum (compounded annually) for 2 years, while person P invested Rs. 5400 at a simple interest rate of 15% per annum for 3 years. How much more interest did P earn compared to K?Solution
ATQ,
Interest received by 'K' = 4500(1 + 20/100)2 – 4500 = 6480 – 4500 = Rs. 1980 Interest received by 'P' = (5400 × 3 × 15) ÷ 100 = Rs. 2430 So, difference in interests received = 2430 – 1980 = Rs. 450
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