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A sum of Rs. 23000 was invested under simple interest for 8 years at a rate of interest 8%. A sum of Rs. 95000 was invested under compound interest at a rate of 12% for two years. Find the difference between the interests.1. 89922. 100923. 91284. 9448 |
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Answer» Correct Answer - Option 4 : 9448 Given: A sum of Rs. 23000 was invested under simple interest for 8 years at a rate of interest 8%. A sum of Rs. 95000 was invested under compound interest at a rate of 12% for two years. Formula Used: Simple Interest = Principal × rate × time/100 = prt/100 (Where principal be p and rate be r). Interest under compound interest = p × [(1 + r/100)n – 1] Calculation: Interest under compound interest = 95000[(1 + 12/100)2 – 1] ⇒ 95000 × 1.12 × 1.12 – 95000 = Rs. (119168 – 95000) = Rs. 24168 Interest under SI = prt/100 = Rs. (23000 × 8 × 8/100) = Rs. 14720 Difference = Rs. (24168 – 14720) = Rs. 9448 ∴ The difference between the interests is Rs. 9448 |
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