Paper 1 · Mathematical Reasoning and Aptitude
Rs 2000 is invested each on simple interest and compound interest at 10% per annum for 3 years. What is the difference between the two amounts?
ARs 56
BRs 62 ✓ Correct
CRs 70
DRs 76
Correct answer: (B) Rs 62 — The difference is Rs 62, so that is the answer.
Explanation
★The difference is Rs 62, so that is the answer.
★The simple interest for 3 years is 2000 times 10 times 3 over 100, which is 600.
★The compound amount is 2000 times 1.1 cubed, which is 2662, so the compound interest is 662.
★The difference between the interests is 662 minus 600.
★That equals 62.
★So the difference between the two amounts is Rs 62.
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