Abhishek invested an amount of Rs.45,000 for two years with Company B under Scheme III which offers compound interest and Jeevan invested equal amount for two years with Company C under Scheme IV which offers simple interest. Who earned more interest and how much ?

Rate of interest in company B under scheme III = 8 %

Compound interest earned by Abhishek = $$P [(1 + \frac{R}{100})^T - 1]$$

= $$45,000 [(1 + \frac{8}{100})^2 - 1]$$

= $$48,000 (\frac{11664}{10000} - 1)$$

= $$48,000 \times \frac{1664}{10000} = 7,488$$

Rate of interest in company C under scheme IV = 10.5 %

Simple interest earned by Jeevan = $$\frac{P \times R \times T}{100}$$

= $$\frac{45,000 \times 10.5 \times 2}{100}$$

= Rs. $$9,450$$

$$\therefore$$ Required difference = $$9450 - 7488 = 1962$$

Thus, Jeevan earned more interest by Rs. 1,962