Multiple choice

An equal principal was invested in two banks first offering 15% simple interest and second offering compound interest of 20%. If the difference of interest from both banks after 3 years was Rs. 417. Find the principle invested in each bank.

  1. Rs. 1800

  2. Rs. 1500

  3. Rs. 2400

  4. Rs. 3000

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SI at 15% for 3 years: Interest = P × 0.15 × 3 = 0.45P. CI at 20% for 3 years: Amount = P × 1.20³ = 1.728P, Interest = 0.728P. Difference = 0.728P - 0.45P = 0.278P = 417. Solving: P = 417/0.278 = 1500.

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