A man deposited Rs 6000 in a bank at 5% simple interest. Another man d

1.	A man deposited Rs 6000 in a bank at 5% simple interest. Another man deposited Rs 5000 at 8% compound interest. After 2 years, the difference of their interests will be (a) Rs 230 (b) Rs 232 (c) Rs 600 (d) Rs 832
Answer» (b) Rs 232 First man's S.I = \(\frac{Rs\,6000\times5\times2}{100}\) = Rs 600 Second man's C.I = Rs 5000\(\Big[\big(1+\frac{8}{100}\big)^2-1\Big]\) = Rs 5000\(\Big[\big(\frac{27}{25}\big)^2-1\Big]\) =Rs 5000\(\Big[\frac{729-625}{625}\Big]\) = Rs \(\frac{5000\times104}{625}\) = Rs 832 \(\therefore \) Difference in interest = Rs 832 – Rs 600 = Rs 232.

A man deposited Rs 6000 in a bank at 5% simple interest. Another man deposited Rs 5000 at 8% compound interest. After 2 years, the difference of their interests will be (a) Rs 230 (b) Rs 232 (c) Rs 600 (d) Rs 832

Answer»

(b) Rs 232

First man's S.I = \(\frac{Rs\,6000\times5\times2}{100}\) = Rs 600

Second man's C.I = Rs 5000\(\Big[\big(1+\frac{8}{100}\big)^2-1\Big]\)

= Rs 5000\(\Big[\big(\frac{27}{25}\big)^2-1\Big]\)

=Rs 5000\(\Big[\frac{729-625}{625}\Big]\)

= Rs \(\frac{5000\times104}{625}\) = Rs 832

\(\therefore \) Difference in interest = Rs 832 – Rs 600 = Rs 232.