Money invested by six persons A–F at simple interest, with rate, time and a rupee value. Dashes are missing and to be calculated.
| Person | Rate of Interest | Time | Value (Rs) |
|---|---|---|---|
| A | 6% | — | 18000 |
| B | 6% | — | 30000 |
| C | — | 5 years | 29000 |
| D | — | 3 years | 45000 |
| E | 8% | — | 20000 |
| F | — | 2 years | 60000 |
If the interest received by F is 20% of the sum invested by him, then how much more money as interest would he have earned if he had invested the money in compound interest?
ARs 700
BRs 600 ✓ Correct
CRs 300
DRs 400
Correct answer: (B) Rs 600
Explanation
F would have earned Rs 600 more as interest under compound interest.
F's principal is 60000 for 2 years, and the total interest is 20 percent of it.
This makes the simple interest rate 10 percent per year.
Simple interest for 2 years is Rs 12000, giving an amount of Rs 72000.
At 10 percent compounded yearly for 2 years the amount is 60000 times 1.1 squared, that is Rs 72600.
The extra interest is 72600 minus 72000, which is Rs 600.
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