Question
Sneha deposited Rs. 18000 at a simple interest rate of 10%
per annum, whereas Riya deposited Rs. 17500 at compound interest of 9% per annum, compounded annually. Calculate the difference in interest earned by Sneha and Riya after 2 years.Solution
ATQ,
Simple interest received by Sneha = 18000 × 10 × 2 ÷ 100 = Rs. 3600
Compound interest received by Riya = 17500 × {(1 + (9/100))}² − 17500
= 17500 × 1.1881 − 17500
= Rs. 3291.75
So, difference in interests received = 3600 − 3291.75 = Rs. 308.25
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