New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Find the difference between the compound interest earned on

    Rs. 12,000 for 2 years at 10% p.a., compounded annually, and the simple interest earned on Rs. 9,000 for 4 years at 13% p.a.
    A 2520 Correct Answer Incorrect Answer
    B 2421 Correct Answer Incorrect Answer
    C 2350 Correct Answer Incorrect Answer
    D 2160 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Compound interest received = 12000 × {1 + (10/100)}² − 12000

    = 12000 × 1.10² − 12000

    = 12000 × 1.21 − 12000

    = Rs. 14,520 − 12,000 = Rs. 2,520

    Simple interest received = 9000 × 4 × 13 ÷ 100= 9000 × 0.52 = Rs. 4,680

    So, required difference = 4680 − 2520 = Rs. 2,160

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