As per scheme (a) a car loan of Rs. 4 lakh at 12.5 p.c.p.a. rate of simple interest can be borrowed on a repayment term of lump sum amount at the end of 3 years.
As per scheme (b), the amount can be repaid at the end of 2 years, but compound interest (compounded annually) would be charged at the same rate. What would be the difference in amount of interest between the two schemes?
Option
(1)Rs. 43,125/-
(2)Rs. 43,750/-
(3)None of these
(4)Data inadequate
(5)Rs. 41,025/-

• Scheme (a),
  p=400000
  r=12.5%
  n=3
  SI = 400000*3*12.5/100
  SI = 150000
  Total Sum = 550000
  
  Scheme (b)
  Amount = 400000[1 + 12.5/100]^2
  => 400000*[9/8 * 9/8]
  Amount = 506250
  
  Difference is 550000 - 506250 = 43750
  
  Ans : (2) Rs. 43750
• 10 years agoHelpfull: Yes(29) No(2)
• scheme 1)400000*12.5*3/100=150000
  total sum=400000+150000=550000
  
  scheme 2)1st year 400000*12.5*1/100=50000
  C.I.=450000 2nd year 450000*12.5*1/100=56250
  C.I.=506250
  
  Difference=550000-506250=43750
• 10 years agoHelpfull: Yes(6) No(0)
• 96
  difference in numbrs are increasing by 5.
  differences are 6,11,16,21..
  next difference will be 26.
  hence next number = 70+26=96
  
• 8 years agoHelpfull: Yes(0) No(1)