If a sum of ₹5,000 is taken at a simple rate of interest of 15% per annum for 3 years and another sum of ₹8,000 is taken at a simple interest of 12% per annum for 4 years, the positive difference of the interests paid is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. ₹1,590.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
Interest for ₹5,000 at 15% for 3 years
⇒ SI = (5000 × 15 × 3)/100 = (5000 × 45)/100 = Rs. 2250
The interest paid for the first loan is ₹ 2,250
Interest for ₹8,000 at 12% for 4 years
⇒ SI = (8000 × 12 × 4)/100 = (8000 × 48)/100 = Rs. 3840
The interest paid for the second loan is ₹3,840
Thus difference = 3840 - 2250 = Rs. 1590
Thus, the positive difference in the interest paid is ₹1,590