If a sum of Rs. 5,000 is taken at a simple rate of interest of 15% per annum for 3 years and another sum of Rs. 8,000 is taken at a simple interest of 12% per annum for 4 years, the positive difference of the interests paid is:

Correct option is B

Given:

First case: P = Rs 5000, r = 15% p.a., and t = 3 years

Second case: P = Rs 8000, r = 12% p.a., and t = 4 years

Formula Used:

SI = $$\frac{P\times R\times T}{100}$$​​

Solution:

For the first case,

SI = $$\frac{5000\times 15\times 3}{100}=2250$$​​

For the second case,

SI = $$\frac{8000\times 12\times 4}{100}=3840$$​​

Difference in the interests = 3840 - 2250 = Rs 1,590