Question
Meena invests Rs. 55,000 in Scheme 'L' and Rs. 32,000 in
Scheme 'M'. Scheme 'L' provides simple interest at 11% p.a. for 3 years, and Scheme 'M' offers 10% p.a. for 4 years. What is the difference between the simple interest earned from Scheme 'L' and Scheme 'M'?Solution
ATQ,
We know that, simple interest = {(principal × rate × time) / 100}
Simple interest from Scheme 'L' = (55000 × 11 × 3) / 100 = Rs. 18,150
Simple interest from Scheme 'M' = (32000 × 10 × 4) / 100 = Rs. 12,800
So, required difference = 18150 - 12800 = Rs. 5,350
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