Multiple choice

Passage

Directions: Study the following information carefully and answer the question. The ratio of money saved by Bhupinder and Chaman in a year was 4 : 3, respectively. Chaman earned Rs. 40,000 in the year. Bhupinder spent Rs. 5000 more than what Amar spent in the year. Money spent by Chaman was Rs. 7500 less than the average money spent by Amar and Bhupinder in the year. Money earned by Chaman in the year was of the money earned by Amar in the year. Bhupinder saved Rs. 20,000 in the year. Note: Money earned in the year = Money saved + Money spent

Find the difference (in Rs.) between the interest earned by Amar and Bhupinder, if they both deposited 50% of the money saved in a bank at simple interest of 12.5% p.a. for two years.

  1. Rs. 825

  2. Rs. 625

  3. Rs. 2500

  4. Rs. 1250

  5. Rs. 1050
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

From the passage, Bhupinder saved Rs. 20000, and Amar saved Rs. 15000, so they deposited Rs. 10000 and Rs. 7500 respectively into the bank. Using the simple interest formula SI = PRT / 100, Bhupinder's interest is (10000 * 12.5 * 2) / 100 = 2500, and Amar's interest is (7500 * 12.5 * 2) / 100 = 1875. The difference between their earned interest is 2500 - 1875 = Rs. 625.

Keep practicing — related questions