New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Person K invested Rs. 4500 at a

    compound interest rate of 20% per annum (compounded annually) for 2 years, while person P invested Rs. 5400 at a simple interest rate of 15% per annum for 3 years. How much more interest did P earn compared to K?
    A Rs.250 Correct Answer Incorrect Answer
    B Rs.650 Correct Answer Incorrect Answer
    C Rs.450 Correct Answer Incorrect Answer
    D Rs.500 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Interest received by 'K' = 4500(1 + 20/100)2 – 4500 = 6480 – 4500 = Rs. 1980 Interest received by 'P' = (5400 × 3 × 15) ÷ 100 = Rs. 2430 So, difference in interests received = 2430 – 1980 = Rs. 450 

    Practice Next

    Relevant for Exams: