Once you attempt the question then PrepInsta explanation will be displayed.

We can apply the formula to calculate the interest amount

I = P x R x t where

A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

R = Rate of Interest per year as a percent;

t = Time Period involved in years

For SpaceX in 2006,

Principle amount = 10000

Rate of interest = 11.5 % ( As per given graph for SpaceX in 2006)

Time = 1 year

The interest amount received by Aashay in 2007 I = P x R x t

The interest amount received by Aashay in 2007 = 10000 x 11.5 x 1/100= 10000 x 115 x 1/10 x 100 = 10 x 115 = 1150

Total amount received by Aashay in 2007 = Interest amount + Principal amount = 10000 + 1150 = 11150

Again For SpaceX in 2007,

Principle amount = 11150

Rate of interest = 15 % ( As per given graph for SpaceX in 2007)

Time = 1 year

The interest amount received by Aashay in 2008 I = P x R x t

The interest amount received by Aashay in 2008 = 11150 x 15 x 1/100 = 1115 x 15/10 = 1115 x 3/2 = 3345/2 = 1672.5

Total amount received by Aashay in 2008 = Interest amount + Principal amount = 11150+ 1672.5 = 12822.50

Hence, their interest = 12822.50 - 10000 = 2822.50

For NASA in 2006,

Principle amount = 10000

Rate of interest = 13.5 % ( As per given graph for NASA in 2006)

Time = 1 year

The interest amount received by Aashay in 2007 I = P x R x t

The interest amount received by Aashay in 2007 = 10000 x 13.5 x 1/100= 10000 x 135 x 1/10 x 100 = 10 x 135 = 1350

Total amount received by Aashay in 2007 = Interest amount + Principal amount = 10000 + 1350 = 11350

Again For NASA in 2007,

Principle amount = 11350

Rate of interest = 14 % ( As per given graph for NASA in 2007)

Time = 1 year

The interest amount received by Aashay in 2008 I = P x R x t

The interest amount received by Aashay in 2008 = 11350 x 14 x 1/100 = 1135 x 14/10 = 1135 x 7/5 = 227 x 7 = 1589

Total amount received by Aashay in 2008 = Interest amount + Principal amount = 11350+ 1589 = 12939

Since, their interest = 12939 - 10000 = Rs. 2939

Hence, difference between the interests earned = 2939 - 2822.50 = Rs. 116.50

If Aashay had invested the amount in NASA for both years then he would get Rs. 116.50 more.

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