A sum of Rs. 2000 is lent out at 10% per annum simple interest. What is the difference between the interest earned in the 6th year and the 7th year?OptionsRs. 180Rs. 90Rs. 200Rs. 100
Question
A sum of Rs. 2000 is lent out at 10% per annum simple interest. What is the difference between the interest earned in the 6th year and the 7th year?OptionsRs. 180Rs. 90Rs. 200Rs. 100
Solution
In simple interest, the interest is the same for every year. It is calculated as (Principal amount * Rate * Time)/100. Here, the principal amount is Rs. 2000, the rate is 10% per annum, and the time is 1 year. So, the interest for each year is (2000101)/100 = Rs. 200.
Therefore, the interest earned in the 6th year and the 7th year would be the same, i.e., Rs. 200.
So, the difference between the interest earned in the 6th year and the 7th year is Rs. 200 - Rs. 200 = Rs. 0.
However, none of the options given match this answer. There might be a mistake in the question or the options provided.
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