Question
Neha deposited Rs. 35,000 on compound interest at 10%
per annum compounded annually for 3 years, while Meha deposited Rs. 50,000 on simple interest at 18% per annum for 4 years. What is the difference between the interests earned by Meha and Neha?Solution
ATQ,
So, compound interest received by Neha: = Rs. 35,000 × (1 + 0.10)³ − 35,000 = Rs. 35,000 × (1.331) − 35,000 = Rs. 46,585 − 35,000 = Rs. 11,585 So, simple interest received by Meha: = Rs. 50,000 × 0.18 × 4 = Rs. 36,000 So, required difference = 36,000 − 11,585 = Rs. 24,415
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