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# What is the difference between the simple interest on a principal of Rs. 500 being calculated at 5% per annum for 3 years and 4% per annum for 4 years?

A. Rs. 5

B. Rs. 10

C. Rs. 20

D. Rs. 40

E. None of these

### Solution(By Examveda Team)

\eqalign{ & {I_1} = \frac{{P{T_1}{R_1}}}{{100}} \cr & {I_1} = \frac{{ {500 \times 3 \times 5} }}{{100}} \cr & \,\,\,\,\,\,\, = Rs.{\kern 1pt} 75 \cr & {I_2} = \frac{{P{T_2}{R_2}}}{{100}} \cr & {I_2} = \frac{{ {500 \times 4 \times 4} }}{{100}} \cr & \,\,\,\,\,\,\,\, = Rs.{\kern 1pt} 80 \cr & {\text{Difference}} = 80 - 75 \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,5 \cr}

Alternatively
The interest is calculated simply and then it will have a rise of 15% in 1st case and 16% in 2nd case.
Difference = 1% on 500 = Rs. 5

Otherway,
500 == 15% $$\uparrow$$ ⇒ 575 (1st case)
500 == 16% $$\uparrow$$ ⇒ 580 (2nd case)
We can see clear difference of Rs. 5

This Question Belongs to Arithmetic Ability >> Interest

## Comments ( 3 )

1. 2nd interest may be 80... please check

2. Rs.5

3. In 1st method I1 -I2 = (75-60)= 15.

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