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James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?
- a)Rs.720
- b)Rs.350
- c)Rs.660
- d)Rs.510
- e)None of these
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
James invested Rs.3200 in compound interest at 25% rate of interest p...
Given:
James invested Rs.3200 in compound interest at a rate of 25% per annum for 3 years.
James invested Rs.1800 in simple interest at the same rate of interest for 6 years.
To find:
The difference between the simple and compound interest received by James.
Solution:
To find the difference between the simple and compound interest received by James, we need to calculate the simple interest and compound interest separately and then find the difference between them.
Calculating Simple Interest:
Simple Interest (SI) can be calculated using the formula:
SI = (Principal * Rate * Time) / 100
Given:
Principal (P) = Rs.1800
Rate (R) = 25%
Time (T) = 6 years
Substituting the values in the formula, we get:
SI = (1800 * 25 * 6) / 100
SI = 2700
Therefore, the simple interest received by James is Rs.2700.
Calculating Compound Interest:
Compound Interest (CI) can be calculated using the formula:
CI = P * (1 + R/100)^T - P
Given:
Principal (P) = Rs.3200
Rate (R) = 25%
Time (T) = 3 years
Substituting the values in the formula, we get:
CI = 3200 * (1 + 25/100)^3 - 3200
CI = 3200 * (1 + 0.25)^3 - 3200
CI = 3200 * (1.25)^3 - 3200
CI = 3200 * 1.953125 - 3200
CI = 6250 - 3200
CI = 3050
Therefore, the compound interest received by James is Rs.3050.
Calculating the Difference:
Difference = Compound Interest - Simple Interest
Difference = 3050 - 2700
Difference = 350
Therefore, the difference between the simple and compound interest received by James is Rs.350.
Hence, the correct answer is option B) Rs.350.
James invested Rs.3200 in compound interest at a rate of 25% per annum for 3 years.
James invested Rs.1800 in simple interest at the same rate of interest for 6 years.
To find:
The difference between the simple and compound interest received by James.
Solution:
To find the difference between the simple and compound interest received by James, we need to calculate the simple interest and compound interest separately and then find the difference between them.
Calculating Simple Interest:
Simple Interest (SI) can be calculated using the formula:
SI = (Principal * Rate * Time) / 100
Given:
Principal (P) = Rs.1800
Rate (R) = 25%
Time (T) = 6 years
Substituting the values in the formula, we get:
SI = (1800 * 25 * 6) / 100
SI = 2700
Therefore, the simple interest received by James is Rs.2700.
Calculating Compound Interest:
Compound Interest (CI) can be calculated using the formula:
CI = P * (1 + R/100)^T - P
Given:
Principal (P) = Rs.3200
Rate (R) = 25%
Time (T) = 3 years
Substituting the values in the formula, we get:
CI = 3200 * (1 + 25/100)^3 - 3200
CI = 3200 * (1 + 0.25)^3 - 3200
CI = 3200 * (1.25)^3 - 3200
CI = 3200 * 1.953125 - 3200
CI = 6250 - 3200
CI = 3050
Therefore, the compound interest received by James is Rs.3050.
Calculating the Difference:
Difference = Compound Interest - Simple Interest
Difference = 3050 - 2700
Difference = 350
Therefore, the difference between the simple and compound interest received by James is Rs.350.
Hence, the correct answer is option B) Rs.350.
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Community Answer
James invested Rs.3200 in compound interest at 25% rate of interest p...
The compound interest received by James = 3200 * (1 + 25/100)3 – 3200
= 6250 – 3200
= Rs.3050
The simple interest received by James = 1800 * 25 * 6/100 = Rs.2700
Required difference = 3050 – 2700 = Rs.350
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James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer?
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James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer?.
James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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ample number of questions to practice James invested Rs.3200 in compound interest at 25% rate of interest per annum for 3 years. If he invested Rs.1800 in simple interest at the same rate of interest for 6 years, then find the difference between the simple and the compound interest received by James?a)Rs.720b)Rs.350c)Rs.660d)Rs.510e)None of theseCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Banking Exams tests.
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