Question 64

Arun wants to pay Rs.16000 cash for a colour television and Bala wants to purchase the same for Rs.17776, due after 2 years. If the rate of Simple Interest is 5% per annum, which of the deals is better for the shopkeeper?

Solution

SI = ( P * R * T )/100

P = Rs.16000

R = 5%

T = 2 Years

For Arun , SI = ( 16000*5*2)/100 = 1600

Amount = 16000 + 1600 = 17600 rs

For Bala, 17776

So automatically , Bala is a better option.

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