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, alongwith with the amount received (in ₹). 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.

Person-wise Details of Money Invested

Person

Rate of Interest (%)

Time (in years)

Principal (in ₹)

Amount Received (in ₹)

A

6%

-

10000

-

B

6%

-

30000

-

C

-

5

-

25000

D

-

3

45000

-

E

8%

-

20000

-

F

-

2

60000

-

Note: Calculate simple Interest unless specified.

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?

  1. A.

    ₹ 700

  2. B.

    ₹ 600

  3. C.

    ₹ 300

  4. D.

    ₹ 400

Attempted by 1 students.

Show answer & explanation

Correct answer: B

First, calculate the Simple Interest for person F. Given SI is 20% of the principal ₹60,000, so SI = ₹12,000.

Next, determine the rate of interest using SI = (P × R × T) / 100. Substituting values gives 12,000 = (60,000 × R × 2) / 100, resulting in a rate of 10%.

Now, calculate the Compound Interest for 2 years at 10%. The amount becomes ₹60,000 × (1.1)² = ₹72,600, making the CI ₹12,600.

Finally, find the difference between Compound Interest and Simple Interest. The difference is ₹12,600 - ₹12,000 = ₹600.

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