Multiple choice

Mr. Jaipal has invested rs 8 lakhs in a bank at a rate of 10% compounded annually. He also gives a loan of 6 lakhs at simple interest but at same rate to one of his friend. He recieves both the amount at the end of 3 years. Find the difference (in lakhs) between both the amounts recieved by Mr. Jaipal at the end of 3 years ?

  1. 825,000

  2. 2,84,800

  3. 8,48,000

  4. 6,12,000

  5. 8,24,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest amount for 8 lakhs at 10% for 3 years is 8 * (1.1)^3 = 8 * 1.331 = 10.648 lakhs. Simple interest amount for 6 lakhs at 10% for 3 years is 6 + (6 * 0.1 * 3) = 6 + 1.8 = 7.8 lakhs. The difference is 10.648 - 7.8 = 2.848 lakhs, which is 2,84,800.

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