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

    Question

    Arjuna deposited Rs.90,000 in an

    SIP that offers simple interest at a rate of 10% per annum for 3 years. Had he deposited the same amount for 2 years in another SIP offering compound interest at a rate of 20% per annum, how much more interest would he have received?
    A Rs.10250 Correct Answer Incorrect Answer
    B Rs.12600 Correct Answer Incorrect Answer
    C Rs.12000 Correct Answer Incorrect Answer
    D Rs.13250 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, \Simple interest earned from the SIP = (90000 × 10 × 3)/100 = Rs. 27000 Compound interest earned from another SIP  = 90000 × {(1.2)2 – 1} = Rs. 39600 Required difference = 39600 - 27000 = Rs.12600

    Practice Next