A man deposited Rs 6000 in a bank at 5% P.a simple interest another man deposits Rs 5000 at 8% P.a Compounded interest. After 2 years the difference of their interest will be_________?
Q1. A man deposited Rs 6000 in a bank at 5% P.a simple interest another man deposits Rs 5000 at 8% P.a Compounded interest. After 2 years the difference of their interest will be_________?
Answer: Rs232
Explanation: Simple interest on Rs. 6000 at 5% for 2 years = Rs. 600. Compound interest on Rs. 5000 at 8% for 2 years = Rs. 832. Difference = Rs. 232.