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

    Question

    A man deposited Rs. 16000 at 10% compound interest,

    compounded annually while Rs. 14000 at 13% simple interest per annum. What will be the difference between the compound interest and the simple interest earned by him after 3 years?
    A Rs. 123 Correct Answer Incorrect Answer
    B Rs. 161 Correct Answer Incorrect Answer
    C Rs. 164 Correct Answer Incorrect Answer
    D Rs. 220 Correct Answer Incorrect Answer
    E Rs. 342 Correct Answer Incorrect Answer

    Solution

    Compound interest earned by the man in 3 years = 16000 × {(1 + 10/100)3 – 1)} = 16000 × 0.331 = Rs. 5296 Simple interest earned by the man in 3 years = 14000 × 0.13 × 3 = Rs. 5460 Required difference = 5460 – 5296 = Rs. 164

    Practice Next
    More Simple and compound interest Questions