Question

On comparison between simple interest and CI
9. Mr Das invested Rs 20,000 at a simple interest rate of 10% per annum for 3 years while Mr Sinha
invested the same sum at the compound interest rate of 15% for 2 years. Who will earn more
interest and by how much?​

Answer 1

Answer:

Mr. Sinha earns more than Mr. Das by 450₹

Step-by-step explanation:

For Mr. Das

P = 20000 r = 10 t = 3

A = P( 1 + rt/100) for S.I

A = 20000( 1+30/100)

A = 20000x(130/100)

A = 26000

For Mr. Sinha

P = 20000 r = 15 n = 2

A = P( 1 + r/100)^n

A = 20000( 1+15/100)^2

A = 20000(23/20)^2

A = 20000 x 23/20 x 23/20

A = 26450

Mr. Sinha will earn more money by 450₹