Question

Raj and Ravi deposit the same amount
of 1000 for 2 years. Raj gets a simple
interest of 15% per annum on his amount
and Ravi gets 8% per annum compound
interest compounded annually. Whose
amount is more and by how much?​

Answer 1

Step-by-step explanation:

For Raj,

1000×2×15/100=300 (amount after 2 yrs 1000+300=1300)

For Ravi,

1000×108/100×108/100=1166.40

so interest will be 166.40 (amount after 2yrs 1000+166.40= 1166.40)

so Raj 's amount is more than Ravi by 1300-1166.40=133.60)