Question

Shishir and Gowtham won ₹2000 each in a dance competition. Gowtham decides to save the money in his piggy bank, whereas Shishir spends ₹100 and invests the rest amount at simple interest of 25% per annum. Who will be left with more money at the end of one year?

• A. Shishir
• B. Gowtham
• C. Both of them will have equal money.
• D. They will have no money left

Answer 1

The correct option is A Shishir

Amount of money left with Shishir after spending ₹100 = ₹1900
Interest earned on ₹1900 after one year $=\frac{PRT}{100}$
$=\frac{1900\times 25\times 1}{100}$
$=₹475$
So total moeny left with Shishir after one year
= ₹1900 + ₹475
= ₹2375

Since Gowtham did not spend or invest his money and had just saved it, he was left with only ₹2000 at the end of one year whereas Shishir, even after spending ₹100 on himself, invested the rest of the money wisely and was able to increase his income by the interest earned.