Question
A man deposited Rs. 8600 at 20% compound interest and
Rs. 7840 at 15% simple interest for 2 years each. The difference between the compound interest and simple interest earned by the man will be?Solution
Compound interest earned by the man = 8600 × ((1 + 20/100) – 1)² = 8600 × (11/25) = Rs. 3784 Simple interest earned by the man = (7840 × 15 × 2)/100 = Rs. 2352 Required difference = 3784 – 2352 = Rs. 1432
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