If a sum of ₹5,000 is taken at a simple rate of interest of 15% per annum for…

2024

If a sum of ₹5,000 is taken at a simple rate of interest of 15% per annum for 3 years and another sum of ₹8,000 is taken at a simple interest of 12% per annum for 4 years, the positive difference of the interests paid is:

  1. A.

    ₹1,643

  2. B.

    ₹1,590

  3. C.

    ₹1,286

  4. D.

    ₹1,378

Attempted by 11 students.

Show answer & explanation

Correct answer: B

First Interest Calculation:

Principal (P) = ₹5,000, Rate (R) = 15%, Time (T) = 3 years.

Interest = (5,000 × 15 × 3) / 100 = ₹2,250.

Second Interest Calculation:

Principal (P) = ₹8,000, Rate (R) = 12%, Time (T) = 4 years.

Interest = (8,000 × 12 × 4) / 100 = ₹3,840.

Difference:

Positive Difference = |2,250 - 3,840| = ₹1,590.

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