Question

Fill in the blanks to make the statement true:

The difference of interest for $2$ years and $3$ years on a sum of $₹2100$ at $8\%$ per annum is _________.

Answer 1

Evaluate interest rate(s)

Given, principal amount $P=₹2100$

and, interest rate $I=8\%$

We know that, $I=\frac{P\times R\times T}{100}$

$\Rightarrow$ In case when time $\left(T\right)$ is $2$ years, $I=\frac{2100\times 8\times 2}{100}$, i.e. $₹336$

$\Rightarrow$ In case when time $\left(T\right)$ is $3$ years, $I=\frac{2100\times 8\times 3}{100}$, i.e. $₹504$

So, the difference between the two interest amounts will be $₹504-₹336=168$

Hence, the difference of interest for $2$ years and $3$ years is $₹168$