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

    Question

    A man deposited Rs. 18000 at 10% compound interest,

    compounded annually while Rs. 17500 at 12% 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 342 Correct Answer Incorrect Answer
    B Rs 182 Correct Answer Incorrect Answer
    C Rs 365 Correct Answer Incorrect Answer
    D Rs 458 Correct Answer Incorrect Answer
    E Rs 336 Correct Answer Incorrect Answer

    Solution

    Compound interest earned by the man in 3 years = 18000 × {(1 + 10/100)3 – 1)} = 18000 × 0.331 = Rs. 5958 Simple interest earned by the man in 3 years = 17500 × 0.13 × 3 = Rs. 6300 Required difference = 6300 – 5958 = Rs. 342

    Practice Next