New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    A man deposited Rs. 7000 at 10% compound interest,

    compounded annually while Rs. 6500 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 218 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

    Solution

    Compound interest earned by the man in 3 years = 7000 × {(1 + 10/100)3 – 1)} = 7000 × 0.331 = Rs. 2317 Simple interest earned by the man in 3 years = 6500 × 0.13 × 3 = Rs. 2535 Required difference = 2535 – 2317 = Rs. 218

    Practice Next