Question

which is a better investment ₹5000 for 10 year at 5% per annum or 5500₹ 8year at the rate of 6% per annum

Answer 1

1) 5000, 10, 5
$\frac{5000 \times 10 \times 5}{100} = 2500$
= 5000 + 2500 = 7500

2) 5500, 8, 6
$\frac{5500 \times 8 \times 6}{100} = 2640$
= 5500 + 2640 = 8140

2nd is better investment