Question

Which is a better investment: *5000 for 10 years at 5% p.a. or *5500 for 8 years at 6% p.a.?​

Answer 1

1%=5000/100=50

5%=5*50=250*10year=2500

1%=5500/100=55

6%=55*6=330*08year=2640

therefore,5500 for 8 year at 6% is better investment

Answer 2

Answer:

S.I. in ist case

S.I = (5000×10×5 )/100= rs. 2500

S.I. in 2nd case

S.I. = (5500 × 8 ×6 )/100 = rs.2640

so, 2nd investment is better.