Two different finance companies declare a fixed annual rate of interest on the amount invested by investors with them. The interest rate declared by these companies can vary from year to year depending on the variation in the country's economy and the interest rate of the banks. The annual rate of interest offered by the two companies P and Q is shown in the graph below.
Study the graph and answer the question.
The annual percentage rate of interest offered by two finance companies P and Q over the Years.
A sum of Rs.3.5 lakhs was invested in company Q in the year 2000 for one year. How much more simple interest will accrue if the amount was invested in company P
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 5250
| Understanding | Application |
|
According to question for the company Q |
SI = 3.5 × 7.5 × 1 = 26.25 |
| For the company P |
SI = 3.5 × 9 × 1 = 31.5 |
| Hence |
Difference = 31.5 - 26.25 = 5.25 lakh So Rs.5250 |