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    Question

    Ragini borrowed ₹21,600 at a simple interest rate of

    18% per annum, while Misthi borrowed ₹51,200 at an annual compound interest rate of 12.5%. Currently, Ragini is 14 years old, and Misthi is 16 years old. Calculate the difference in the total interest paid by Ragini and Misthi by the time they both turn 18.
    A Rs. 1,952 Correct Answer Incorrect Answer
    B Rs. 2,242 Correct Answer Incorrect Answer
    C Rs. 1,648 Correct Answer Incorrect Answer
    D Rs. 1,784 Correct Answer Incorrect Answer
    E Rs. 1,840 Correct Answer Incorrect Answer

    Solution

    Time period for Ragini = (18 - 14) = 4 years Time period for Misthi = (18 - 16) = 2 years So, interest paid by Ragini = 21,600 x 4 x 0.18 = Rs. 15,552 CI = P x (1 + r/100)t - P And interest paid by Misthi = 51,200 X (9/8)  2 - 51,200 = Rs. 13,600 Therefore, required difference = Rs. 15,552 - 13,600 = Rs. 1,952

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