Question

What is the difference between the simple interest (S.I) on a sum of ₹ 2,000 being calculated at 6% for 3 years and 7% for 3 years?

• A. ₹ 50
• B. ₹ 40
• C. ₹ 55
• D. ₹ 60

Answer 1

The correct option is D ₹ 60

Principal (P) = ₹ 2,000
Time period (T) = 3 years

$\text{Simple interest (S.I) =}\frac{P\times R\times T}{100}$

For rate of interest (R) = 6%,

$\text{S.I =}\frac{2,000\times 6\times 3}{100}$

$\Rightarrow \text{S.I =}₹360$

For rate of interest (R) = 7%,

$\text{S.I =}\frac{2,000\times 7\times 3}{100}$

$\Rightarrow \text{S.I =}₹420$

$\text{Difference in simple interest}=₹420-₹360=₹60$