Gopal invested Rs 16000 in a scheme offering 10 compound interest for three years compounded annuall......

Gopal invested Rs.16000 in a scheme offering 10% compound interest for three years compounded annually. Vimal invested Rs.21000 in a scheme offering 8% simple interest for three years. Find the difference in the interest earned by both of them.

Interest earned by Gopal = 16000*{(1+0.10)^3 – 1} = Rs.5296
Interest earned by Vimal = 21000*0.08*3 = Rs.5040
Required Difference = Rs.256

Hence, option 3 is the correct answer.

By: Amit Kumar