Multiple choice

Mr. Kumar deposits Rs. 100 every month under a recurring deposit scheme for three years at the rate of 10% p.a. Mr. Shah deposits Rs. 300 per quarter for three years under a scheme that pays a simple interest at the rate of 10% p.a. The difference in the interest earned by them is

  1. Rs. 300

  2. Rs. 150

  3. Rs. 30

  4. Rs. 100

  5. Rs. 40
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C Correct answer
AI explanation

Using the recurring deposit interest formula where interest equals P multiplied by n multiplied by (n plus 1) multiplied by r divided by 2400, Mr. Kumar's interest is 100 multiplied by 36 multiplied by 37 multiplied by 10 divided by 2400, equaling Rs. 555. Mr. Shah's simple interest is calculated as 300 multiplied by 12 multiplied by (12 plus 1) divided by 2 multiplied by 10 divided by 400, which equals Rs. 585. The difference between their interests is 585 minus 555, resulting in Rs. 30. The difference is Rs. 30.

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