📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A man invested Rs. 25,000 at simple interest of 12% p.a.

      If he had instead invested the same sum on compound interest of 12% p.a., compounded annually, then how much more he would have earned as interest after 3 years?
      A Rs.1277.7 Correct Answer Incorrect Answer
      B Rs.1388.8 Correct Answer Incorrect Answer
      C Rs.1,123.2 Correct Answer Incorrect Answer
      D Rs.1335.2 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ, Simple interest = Sum × (rate of interest/100) × (time in years) Simple interest earned in three years = 25,000 × (12/100) × 3 = Rs. 9,000\ Compound interest earned in three years: = 25,000 × {1 + (12/100)}³ - 25,000 = 25,000 × (1.12)³ - 25,000 = 25,000 × 1.404928 - 25,000 = Rs. 35,123.2 - 25,000 = Rs. 10,123.2 So, required difference = 10,123.2 - 9,000 = Rs. 1,123.2

      Practice Next
      More Simple and compound interest Questions

      Relevant for Exams:

      ask-question