Q36
A person deposited a sum of of Rs 6000 in a bank at 5% per annum simple interest. Another person deposited Rs 5000 at 8% per annum compound interest. After two years, the difference of their interest will be = ?
A.
Rs. 230
B.
Rs. 232
AnswerC.
Rs. 832
D.
Rs. 600
Answer: Option B
Solution
Answer: Option B
Solution:
\begin{aligned}
& {\text{Principal (}}{{\text{P}}_1}{\text{) = Rs. 6000}} \\
& {\text{Time (t) = 2 years}} \\
& {\text{Rate % = 5% }} \\
& {\text{Simple interest}} \\
& {\text{ = }}\frac{{6000 \times 5 \times 2}}{{100}}{\text{ = Rs. 600}} \\
& {\text{Principal (}}{{\text{P}}_2}{\text{) = Rs. 5000}} \\
& {\text{Time (t) = 2 years}} \\
& {\text{Rate % = 8% }} \\\end{aligned}2 year effective rate for Compound interest