What will be the difference between the interest on a sum of Rs.2,000 at 7% per annum for 3 years and that on a sum of Rs.3,200 at 6% per annum for 2 years?
Answer & explanation
Correct answer: option 1
Interest = \(\frac{Principal ×Rate × Time }{100}\)
Interest at Rs 2000 at 7% in 3 years ( I1 ) = \(\frac{2000 ×7 × 3}{100}\)= Rs 420
Interest at Rs 3200 at 6% in 2 years ( I2 ) = \(\frac{3200 ×6× 2}{100}\)= Rs 384
∴ I1 - I2 = Rs 420 - Rs 384 = Rs 36