Multiple choice

Kamal and Anand each lent the same sum of money for 2 years at 5% at simple interest and compound interest respectively. Anand received Rs. 15 more than Kamal. Find the amount of money lent by each and the interest received.

  1. Rs. 6,000; Kamal = Rs. 600 and Anand = Rs. 615

  2. Rs. 8,000; Kamal = Rs. 600 and Anand = Rs. 615

  3. Rs. 6,000; Kamal = Rs. 800 and Anand = Rs. 615

  4. Rs. 6,000; Kamal = Rs. 600 and Anand = Rs. 610
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A Correct answer
Explanation

Difference between CI and SI for 2 years = P * (r/100)^2. 15 = P * (5/100)^2 = P * (1/400). P = 6000. SI = 6000 * 0.05 * 2 = 600. CI = 6000 * (1.05^2 - 1) = 615.

AI explanation

The difference between compound interest and simple interest for two years is calculated as P(r/100)^2, where P is the principal and r is the rate. Substituting the given values gives 15 = P(5/100)^2, which simplifies to 15 = P * 0.0025, meaning the principal is Rs. 6000. Kamal's simple interest is (6000 * 5 * 2)/100 = 600, while Anand's compound interest is 6000 * (1 + 5/100)^2 - 6000 = 615.

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