Question

Which is better investment ( investment a: ₹16500 at 5% simple interest for 1 year or investment b: ₹15000 at 4% simple interest for 2 years).

Answer 1

Answer:the second investment

Step-by-step explanation:

Simple interest= PNR /100

In first case,

Here, P = 16500 rs

N = 1

R= 5

Thus, simple interest is 16500×5×1/100 = 825 rs

Profit% = 825/16500×100 = 5%

In second case, P = 15000 rs

N = 2

R = 5

So SI = 15000×2×4/100 = 1200 rs

Profit% = 1200/15000×100 = 8%