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

    ⚡ BIG BEE DAYS Are Live - Spin the Wheel to Get BIGGEST DISCOUNT of the Year -⚡

    Question

    An amount of Rs. 2400 is placed in SIP 'P' at a 25% per

    annum simple interest rate for 8 years, and Rs. 2500 is invested in SIP 'Q' with a 20% annual compound interest rate, compounded annually for 2 years. Determine the difference between the interest earnings from these two investments.
    A Rs.3752 Correct Answer Incorrect Answer
    B Rs.1700 Correct Answer Incorrect Answer
    C Rs.3700 Correct Answer Incorrect Answer
    D Rs.3000 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Interest received from SIP ‘P’ = (2400 × 25 × 8)/100 = Rs. 4800 Interest received from SIP ‘Q’ = 2500(1 + 20/100)2 – 2500 = Rs. 1100 Required difference = 4800 – 1100 = Rs. 3700

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question