Question

1. Ram invested Rs. 60,000 at an interest rate 8% p.a. compounded half yearly for 2 years. Mohan
invested same amount at 12% p.a. for 3 years at simple interest. Who earned more interest
and by how much ?

Answer 1

Answer:

obviously ram earned Rs.48591.51 more than mohan

Step-by-step explanation:

half yearly compounding for 2 yrs meaning compounding is happening 4 times (there are 4 half years)

amount earned by ram = p(1+r/200)⁴

there fore he gets Rs. 70191.51

simple interest earning by mohan Will be 60000*12*3/100 = rs. 21600

therefore ram earns rs. 48591.51