Question

7. What is the difference between simple interest on 5,000 at 8% per annum and simple interest on 4,000 at 412% per annum for 8 years? (A) 60 (B) 40 (C) 20 (D) 80 ​

Answer 1

Question~

• What is the difference between simple interest on 5,000 at 8% per annum for 3 years and simple interest on  4,000 at 4% per annum for 8 years?  (A) 60 (B) 40 (C) 20 (D) 80​

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Answer :

(d) 80

Given :

• Simple interest on 5,000 at 8% per annum for 3 years.
• Simple interest on  4,000 at 4% per annum for 8 years.

To find :

• the difference between simple  interest on 5,000 at 8% per annum  for 3 years and simple interest on  4,000 at 4% per annum for 8 years

Solution :

⇒ Let's find the Simple Interest.

Here,  

• P = 5000
• R = 8%
• T = 3

Simple Interest = p × r × t/100

= 5000 × 8 × 3/100

= 5000 × 24/100

= 50 × 24

= 1200

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Here,  

• P = 4000
• R = 4
• T = 8

Simple Interest = p × r × t/100

= 4000 × 4 × 8/100

= 4000 × 32/100

= 40 × 32

= 1280

Difference = 1280 - 1200

= 80  

• Therefore, the difference is 80.