Multiple choice

Ram invested 5,000 at the rate of 14% per annum and 10,000 at the rate of 7% per annum, at simple interest for one year. What is the difference between the interests received in one year in the two investments?

  1. 3

  2. 2

  3. 1

  4. 0

  5. None
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest 1 = 5000 * 0.14 * 1 = 700. Interest 2 = 10000 * 0.07 * 1 = 700. Difference = 700 - 700 = 0.

AI explanation

Using the simple interest formula SI = (P * R * T) / 100, the interest on Rs. 5000 at 14% for one year is (5000 * 14 * 1) / 100 = Rs. 700. The interest on Rs. 10000 at 7% for one year is (10000 * 7 * 1) / 100 = Rs. 700. The difference between these two interests is 700 - 700 = 0.

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