Multiple choice

Raju invested Rs.60000 on scheme A which offers simple interest at 8% per annum for 6 years and he invested Rs.75000 on scheme B which offers compound interest at 10% per annum for 3 years. Find the difference between the interest earned by him from scheme A and scheme B.

  1. Rs. 3656

  2. Rs. 3975

  3. Rs. 4286

  4. Rs. 4235

  5. None of these
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B Correct answer
AI explanation

Using the simple interest formula for scheme A, the interest is 60000 multiplied by 8 multiplied by 6 divided by 100, which equals 28800. Using the compound interest formula for scheme B, the interest is 75000 multiplied by (1 plus 10 divided by 100) cubed minus 75000, which equals 75000 multiplied by 0.331 to give 24825. The difference between the interest from scheme A and scheme B is 28800 minus 24825, which equals 3975.

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