Question

Which is a better investment:₹5000 for 10 years at 5%p.a. for ₹5500 for 8 years at the rate of 6% p.a.??
12 points!!!

Answer 1

RS 5500 for 8 yrs at 6%p.a

Answer 2

1st Investment,

S.I = P*r*t/100 = 5000*10*5/100 = 2500

Amount = P + S.I = 5000+2500 = 7500 Rs.

2nd investment

S.I = 5500*8*6/100 = 2640 Rs.

Amount = P + S.I = 5500 + 2640 = 8140 Rs.

Therefore, 2nd investment is good...