Question

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 interest will be

• A. Rs. $230$
• B. Rs. $232$
• C. Rs. $600$
• D. Rs. $832$

Answer 1

Answer: (B)

Rs. $232$

Given, First man: $P=$ Rs. $6000,r=5\%,n=2$, Second man : $P=$ Rs. $5000,r=8\%,n=2$

First man's S.I.$=\frac{6000\times 5\times 2}{100}$ $=$ Rs. $600$
Second man's C.I.$=5000[{(1+\frac{8}{100})}^2-1]$

$=5000[{\left(\frac{27}{25}\right)}^2-1]$
$=5000\left[\frac{729-625}{625}\right]$

$=\frac{5000\times 104}{625}$

$=$ Rs. $832$
$\therefore$ Difference in interests $=$ Rs. $832-$ Rs. $600=$ Rs. $232$