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"A” and "B” have to clear their respective loans by paying 3 equal annual installments of Rs.4,00,000 each. "A” pays at 10% per annum of simple interest while "B” pays 10% per annum compound interest. What is the difference in their payments?


Options:
A .   4333.33
B .   5250
C .   3450
D .   4000
Answer: Option D
:
D

- 4, 00, 000{1 + 1.1 + (1.1)2} - 4, 00, 000{1 + 1.1 + 1.2} = 4000. Option(d).



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