The following table shows the details about money invested (principal) in a…
2023
The following table shows the details about money invested (principal) in a bank at a certain rate of interest for a given period of time by six different male persons A-F, along with the amount received (in Rs.). Some values are missing in the table (indicated as '_') that you are expected to calculate if required. Based on the data in the table, answer the questions that follow.
Note: Calculate simple Interest unless specified.
Person-wise Details of Money Invested
Person | Rate of Interest (%) | Time (in years) | Principal (in Rs.) | Amount Received (in Rs.) |
A | 6% | - | 18000 | - |
B | 6% | - | 30000 | - |
C | - | 5 | - | 29000 |
D | - | 3 | 45000 | - |
E | 8% | - | 20000 | - |
F | - | 2 | 60000 | - |
Sub-Question
If the interest received by F is 20% of the sum invested by him then how much more money as interest he would have earned if he had invested the money in compound interest?
Answer: B. Rs. 600 — For Person F, the principal invested is Rs. 60,000 for a time period of 2 years. The problem states that the simple interest received is 20% of the principal…
- A.
Rs. 700
- B.
Rs. 600
- C.
Rs. 300
- D.
Rs. 400
Attempted by 5 students.
Show answer & explanation
Correct answer: B
For Person F, the principal invested is Rs. 60,000 for a time period of 2 years.
The problem states that the simple interest received is 20% of the principal sum invested.
Therefore, Simple Interest (SI) = 20% of Rs. 60,000 = Rs. 12,000.
Using the SI formula (SI = PRT/100), we can find the rate of interest: 12,000 = (60,000 * R * 2) / 100. Solving for R gives a rate of 10% per annum.
Next, we calculate the Compound Interest (CI) for 2 years at this rate of 10%.
The formula is CI = P[(1 + R/100)^T - 1].
Substituting the values: CI = 60,000[(1 + 10/100)^2 - 1] = 60,000[(1.1)^2 - 1] = 60,000[1.21 - 1] = 60,000 * 0.21 = Rs. 12,600.
Finally, to find how much more money he would have earned with compound interest compared to simple interest, we calculate the difference: CI - SI = 12,600 - 12,000 = Rs. 600.