Question

₹ 6400 were lent to Feroz and Rashmi at 15% per annum for `3 1/2` and 5 years respectively. The difference in the interest paid by them is ₹ 150.

Options

• True

• False

Answer 1

This statement is False.

Explanation:

Given, Feroz borrowed ₹ 6400 for `3 1/2` years at 15%

Here, P₁ = ₹ 6400, T₁ = `3 1/2 = 7/2` years and R₁ = 15%

∴ `I_1 = (P_1 xx R_1 xx T_1)/100`

= `(6400 xx 15 xx 7)/(100 xx 2)`

= ₹ 3360

Rashmi borrowed ₹ 6400 for 5 years at 15%,

Here, P₂ = ₹ 6400, R₂ = 15% and T₂ = 5 years

∴ `I_2 = (P_2 xx R_2 xx T_2)/100`

= `(6400 xx 15 xx 5)/100`

= ₹ 4800

∴  Difference between interests = 4800 – 3360 = ₹ 1440

Hence, the difference in interest, paid by them is ₹ 1440.