Multiple choice

A person deposited a sum of Rs.x in a bank at 5% per annum simple interest. Another person deposited Rs.y at 8% per annum compound interest. After two years the difference of their interests will be Rs.232. Find the greater principal, if the ratio between x and y is 6 : 5.

  1. Rs.1000

  2. Rs.5000

  3. Rs.23200

  4. Rs.6000

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SI on x: (x×5×2)/100=0.1x. CI on y for 2 years at 8%: y(1.08²-1)=y(1.1664-1)=0.1664y. Difference: 0.1664y-0.1x=232. Given x:y=6:5, let x=6k, y=5k: 0.1664(5k)-0.1(6k)=232 → 0.832k-0.6k=232 → 0.232k=232 → k=1000. y=5000, x=6000. Greater principal=6000.