Question 111

Two different finance companies declare a fixed annual rate of interest on the amount invested by investors with them. The interest rate declared by these companies can vary from year to year depending on the variation in the country's economy and the interest rate of the banks. The annual rate of interest offered by the two companies P and Q is shown in the graph below.
Study the graph and answer the question.
Annual percentage rate of interest offered by two finance companies P and Q over the years.
A sum of ₹3.5 lakhs was invested in company Q in the year 2000 for one year. How much more simple interest will accrue if the amount was invested in company P?

Solution

Note that, the annual rate offered by company Q and p for the year 2000 is 9% and 7.5% form given Di in other words,

company Q is offering 1.5 more than p

so for a sum of Rs 3.5 lakhs company Q simply interest will accrue more than p

$$\Rightarrow 3.5 lakh\times 1.5$$%

$$\Rightarrow 350000 \times \dfrac{1.5}{100}$$

$$\Rightarrow 350\times 15 $$

$$\Rightarrow 5250$$ RsAns

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