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    Question

    Nisha placed Rs. 25,000 in plan 'P' and Rs. 40,000 in plan

    'Q'. Plan 'P' earns 14% simple interest annually for 2 years, and plan 'Q' earns 9% per annum for 5 years. Calculate how much more interest is earned from plan 'Q' compared to plan 'P'.
    A Rs.11000 Correct Answer Incorrect Answer
    B Rs.15200 Correct Answer Incorrect Answer
    C Rs.18800 Correct Answer Incorrect Answer
    D Rs.16650 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

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

    So, simple interest received from 'P' = (25,000 X 0.14 X 2) = Rs. 7,000

    So, simple interest received from 'Q' = (40,000 X 0.09 X 5) = Rs. 18,000

    So, required difference = 18,000 - 7,000 = Rs. 11,000

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