Which is a better investment $R s .5000$ for $10$ years at $5 %$ p.a. or $R s .5500$ for $9$ years at the rate of $6 %$ p.a?

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Solution

Given $P_{1} = 5000$ Rs. Time = 1o years Rate = 5% P.a
then
Simple intrest $= \frac{P R T}{100} = \frac{500 \times 10 \times 5}{100} = 2500$ Rs.
and $P_{2} = 5500$ Rs. Time = 9 years Reate = 6 %
Simple interest $= \frac{P R T}{100} = \frac{5500 \times 9 \times 6}{100} = 2970$ Rs.
$∴$ Second interest is better as interest is more.

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Which is a better investment Rs.5000 for 10 years at 5% p.a. or Rs.5500 for 9 years at the rate of 6% p.a?

Given P1=5000Rs. Time = 1o years Rate = 5% P.athenSimple intrest =PRT100=500×10×5100=2500Rs.and P2=5500Rs. Time = 9 years Reate = 6 %Simple interest =PRT100=5500×9×6100=2970Rs.∴ Second interest is better as interest is more.

Which is a better investment $R s .5000$ for $10$ years at $5 %$ p.a. or $R s .5500$ for $9$ years at the rate of $6 %$ p.a?