Question
Raman deposited Rs. 16000 at a compound interest rate of
20% per annum, while he deposited Rs. 12000 at a simple interest rate of 30% per annum. After two years, what is the difference in the interest earned from both deposits?Solution
Compound Interest = 16000 × {(1.2)2 – 1} = Rs. 7040 Simple interest = (12000 × 30 × 2)/100 = Rs. 7200 Required difference = 7200 – 7040 = Rs. 160
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