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  • Question
  • Samir invested Rs.10,000 in the company 'A' for one year in 2006. He reinvested the total amount along with interest for next one year in 2007. If he had invested for both years in the Company 'B', what would have been the difference between the interests earned?


  • Options
  • A. Rs. 16.50 less
  • B. Rs. 116.50 more
  • C. Rs. 128.50 less
  • D. Rs. 128.50 more

  • Correct Answer
  • Rs. 116.50 more 

    Explanation

    We can apply the formula to calculate the interest amount
    I = P x R x t where
    A = Total Accrued Amount (principal + interest)
    P = Principal Amount
    I = Interest Amount
    R = Rate of Interest per year as a percent;
    t = Time Period involved in years

    For Company A in 2006,
    Principle amount = 10000
    Rate of interest = 11.5 % ( As per given graph for company A in 2006)
    Time = 1 year
    The interest amount received by Samir in 2007 I = P x R x t
    The interest amount received by Samir in 2007 = 10000 x 11.5 x 1/100= 10000 x 115 x 1/10 x 100 = 10 x 115 = 1150
    Total amount received by Samir in 2007 = Interest amount + Principal amount = 10000 + 1150 = 11150
    Again For Company A in 2007,
    Principle amount = 11150
    Rate of interest = 15 % ( As per given graph for company A in 2007)
    Time = 1 year
    The interest amount received by Samir in 2008 I = P x R x t
    The interest amount received by Samir in 2008 = 11150 x 15 x 1/100 = 1115 x 15/10 = 1115 x 3/2 = 3345/2 = 1672.5
    Total amount received by Samir in 2008 = Interest amount + Principal amount = 11150+ 1672.5 = 12822.50
    Hence, their interest = 12822.50 - 10000 = 2822.50
    For Company B in 2006,
    Principle amount = 10000
    Rate of interest = 13.5 % ( As per given graph for company B in 2006)
    Time = 1 year
    The interest amount received by Samir in 2007 I = P x R x t
    The interest amount received by Samir in 2007 = 10000 x 13.5 x 1/100= 10000 x 135 x 1/10 x 100 = 10 x 135 = 1350
    Total amount received by Samir in 2007 = Interest amount + Principal amount = 10000 + 1350 = 11350
    Again For Company B in 2007,
    Principle amount = 11350
    Rate of interest = 14 % ( As per given graph for company B in 2007)
    Time = 1 year
    The interest amount received by Samir in 2008 I = P x R x t
    The interest amount received by Samir in 2008 = 11350 x 14 x 1/100 = 1135 x 14/10 = 1135 x 7/5 = 227 x 7 = 1589
    Total amount received by Samir in 2008 = Interest amount + Principal amount = 11350+ 1589 = 12939
    Since, their interest = 12939 - 10000 = Rs. 2939
    Hence, difference between the interests earned = 2939 - 2822.50 = Rs. 116.50
    If Samir had invested the amount in company B for both years then he would get Rs. 116.50 more.


  • More questions

    • 1. 
      During which of the following successive weeks number of persons killed came down to a minimum level?

    • Options
    • A. 28 July - 4 August
    • B. 7 July - 14 July
    • C. 30 June - 7 July
    • D. 21 July - 28 July
    • Discuss
    • 2. 
      If the income of Company A in 2002 was $ 600 billion, what was its expenditure?

    • Options
    • A. $ 360billion
    • B. $ 480 billion
    • C. $ 375 billion
    • D. Cannot be determined
    • Discuss
    • 3. 
      Graph shows that the maximum amount was spent on:

    • Options
    • A. Food
    • B. Housing
    • C. Clothing
    • D. Others
    • Discuss
    • 4. 
      The production of which type of cars was 25% of the total production of all types of cars during 1993?

    • Options
    • A. S
    • B. R
    • C. Q
    • D. P
    • Discuss
    • 5. 
      What is the percent increase in the number of Executives recruited by organisation R in 2005 from the previous year? (Rounded off to two digits after decimal)

    • Options
    • A. 18.67
    • B. 12.92
    • C. 16.48
    • D. 13.21
    • Discuss
    • 6. 
      What was the percentage drop in the production of food-grains from 1991 to 1992?

    • Options
    • A. 15
    • B. 20
    • C. 25
    • D. 30
    • Discuss
    • 7. 
      In the art faculty number of students who have opted the course of stenography is how much percent of the total student in the faculty?

    • Options
    • A. 27%
    • B. 10%
    • C. 18%
    • D. 15%
    • Discuss
    • 8. 
      If the miscellaneous charges are Rs. 6000, the advertisement charges are:

    • Options
    • A. Rs. 10,000
    • B. Rs. 12,000
    • C. Rs. 25,000
    • D. Rs. 27,000
    • Discuss
    • 9. 
      The number of students playing Badminton from School E is p % of the students playing Badminton from School B. Then p equals :

    • Options
    • A. 40
    • B. 50
    • C. 42
    • D. 41
    • Discuss
    • 10. 
      What is the average distance traveled by all the trucks together?

    • Options
    • A. 510 Km
    • B. 515 Km
    • C. 425 Km
    • D. 475 Km
    • Discuss


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