Multiple choice

Shikha invested Rs$6,400$ for $3$ years at the rate of $10\%$ per annum compounder annually. Sneha invested the same mount at the same rate for the same time but on simple interest. Who gets more interest and by how much?

  1. Sneha, Rs.$198.40$
  2. Sneha, Rs.$146.50$
  3. Shikha, $146.50$
  4. Shikha, $198.40$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest is Rs. 1,920. Compound interest is Rs. 6,400 x (1.1^3 - 1) = Rs. 2,118.40, so Shikha earns Rs. 198.40 more.

AI explanation

Shikha's compound interest is calculated as Amount = 6400 times (1 + 10 divided by 100) raised to the power of 3, which gives 6400 times 1.331 for a total of Rs. 8518.40, meaning her interest is Rs. 2118.40. Sneha's simple interest is calculated as 6400 times 10 divided by 100 times 3, which equals Rs. 1920. Shikha earns more interest, and the difference is 2118.40 minus 1920, resulting in Rs. 198.40.

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