Question
Vinay invested Rs. 9,500 in scheme 'A' at a simple
interest rate of 12% per annum and Rs. 8,000 in scheme 'B' at a simple interest rate of 20% per annum. Calculate the difference between the interests earned from both schemes after four years.Solution
Simple interest = Principal X (rate/100) X timeInterest earned from 1 st  scheme = (9,500 X (12/100) X 4) = Rs. 4,560Interest earned from 2 nd  scheme = (8000 X (20/100) X 4) = Rs. 6,400So, required difference = 6,400 - 4,560 = Rs. 1,840
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