Multiple choice

Two brothers received Rs 1200 each from their Father. First son lent the amount to his friend at compound interest and received Rs 1348.32 after 2 years. While the second son invested his sum at double the rate of interest at simple interest for 3 years. What is the difference of the amount received by both the brothers after their respective time period?

  1. 273.68

  2. 263.68

  3. 283.68

  4. 280.68

  5. 183.68
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

First son: P=1200, A=1348.32, n=2 years. CI = A-P = 148.32. Using CI formula A=P(1+r/100)^n: 1348.32=1200(1+r/100)^2, so (1+r/100)^2 = 1.1236, giving 1+r/100 = 1.06, r = 6%. Second son: r = 12% (double), SI for 3 years = 1200 × 12 × 3/100 = 432. Amount = 1200 + 432 = 1632. Difference = 1632 - 1348.32 = 283.68.

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