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?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
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