Question

Company E offers compound interest under scheme I and company A offers simple interest under scheme IV. What will be the difference between the interest earned under scheme I of company E and scheme IV of company A respectively in 2 years on an amount of Rs. 1.2 lakhs?

• A. Rs. 1428
• B. Rs. 1328
• C. Rs. 1528
• D. Rs. 1548
• E. None of these

Answer 1

The correct option is A

Rs. 1428

C.l. earned under scheme I of company E
$=P[{(1+\frac{R}{100})}^T-1]=120000[{(1+\frac{9}{100})}^2-1]=12000\times 0.1881=Rs.22572$
C.l. earned under scheme IV of company A
$=\frac{120000\times 2\times 10}{100}=Rs.24000$
$\therefore$ Required difference $=Rs.(24000-22572)=Rs.1428$