Sumit invested Rs50 000 each in two banks for 2 years The first bank gives simple interest at the ra...........

Quantitative Aptitude (MTS) Simple Interest

Sumit invested Rs50,000 each in two banks for 2 years. The first bank gives simple interest at the rate of 11% per annum, while

the other bank gives compound interest, compounded annually at the rate of 10% per annum. How much interest did he earn

from the two banks in 2 years?

This questions was previously asked in

SSC MTS 27th October 2021 Shift-1

Rs21,000

Rs10,000

Rs10,500

Rs21,500

- Simple Interest Calculation:

- First bank: Rs 50,000 at 11% per annum for 2 years.

- Simple Interest = Principal × Rate × Time

- Simple Interest = 50,000 × 11% × 2 = Rs 11,000.

- Compound Interest Calculation:

- Second bank: Rs 50,000 with 10% annual compound interest for 2 years.

- Compound Interest = Principal × (1 + Rate)^Time - Principal

- Compound Interest = 50,000 × (1 + 0.10)^2 - 50,000 = 50,000 × 1.21 - 50,000 = Rs 10,500.

- Total Interest:

- Total interest from both banks = Rs 11,000 + Rs 10,500 = Rs 21,500.

Therefore, the correct option is Option 4: Rs 21,500.

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