Question

Directions: Study the following graph carefully to answer the given questions.




The scheme O differs compound interest (compounded annually) @ 12 p.c.p.a.. What is the difference between the interests earned by Gautam and Rudra from scheme O after 2 yr?

• A. Rs. 1628.16
• B. Rs. 1584.38
• C. Rs. 1672.74
• D. Rs. 1536.58
• E. Rs. 1722.96

Answer 1

The correct option is A Rs. 1628.16

Amount invested by Gautam $=\frac{32000\times 40}{100}=Rs.12800$

Amount invested by Rudra $=\frac{32000\times 60}{100}=Rs.19200$

Now, applying rule $(x+y+\frac{xy}{100})$

Rate of interest $=12+12+\frac{12\times 12}{100}=25.44\%$

$\therefore$ Required difference in interest earned by Rudra and Gautam.

$=\frac{19200\times 25.44}{100}-\frac{12800\times 25.44}{100}$

$=4884.48-3256.32=Rs.1628.16$