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    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'?
    A Rs.5,350 Correct Answer Incorrect Answer
    B Rs.6,420 Correct Answer Incorrect Answer
    C Rs.4,140 Correct Answer Incorrect Answer
    D Rs.3,180 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    We know that, simple interest = {(principal Ă— rate Ă— time) / 100}

    Simple interest from Scheme 'L' = (55000 Ă— 11 Ă— 3) / 100 = Rs. 18,150

    Simple interest from Scheme 'M' = (32000 Ă— 10 Ă— 4) / 100 = Rs. 12,800

    So, required difference = 18150 - 12800 = Rs. 5,350

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