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  • Question
  • Avinash gave a sum of 5400 at the simple rate of interest of 8% to Rajeev for 4 years and Rajeev gave this amount to Chanukya at the rate of 6% for 4 years. Find how much extra amount has to be paid by Rajeev to Avinash after 4 years?


  • Options
  • A. Rs. 364
  • B. Rs. 432
  • C. Rs. 498
  • D. Rs. 554

  • Correct Answer
  • Rs. 432 

    Explanation

    Here Avinash gave to Rajeev and Rajeev gave the same to Chanukya

    Principal amount and Time is same but the only difference is Rate of interest.

    Rajeev took @ 8% and gave it to Chanukya @ 6%

    Here the difference in interest rate = 2%

    2% of 5400 should be the extra amount paid by Rajeev to Avinash

    Required amount = 2   x   5400   x   4 100   =   432

     

    Hence, Rs. 432 is the extra amount has to be paid by Rajeev to Avinash after 4 years.

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