Question

Equal sums of Rs.$7200$ were lent to Megha and Priya at $5$ $\%$ per annum for a period of $4$ years and $5$ years respectively. Find the difference of the interest paid by Megha and Priya.

• A. Rs.$140$
• B. Rs.$560$
• C. RS.$260$
• D. Rs.$360$

Answer 1

Answer: (D)

Rs.$360$

Simple interest on the sum $P$ at rate of interest $R$ for $N$ years is given as $\frac{PNR}{100}$

$\text{Interest paid by Priya}=\frac{7200\times 5\times 5}{100}=Rs1800$

$\text{Interest paid by Megha}=\frac{7200\times 4\times 5}{100}=Rs1440$

Difference $=1800-1440$

$=Rs360$

Hence, D is the right option.