Find difference between CI and SI (approx) for 2 years of Rs.8250 at the rate of 15% p.a. compounded annually.
Answer & explanation
Correct answer: option 1
15% = \(\frac{3}{20}\)
⇒ \(\frac{Diff.}{Principal}\) = \(\frac{3^2}{20^2}\) = \(\frac{9}{400}\)
⇒ 400R = 8250
⇒ 1R = \(\frac{8250}{400}\)
⇒ Difference = 9R = 9 × \(\frac{8250}{400}\) = 185.62 = 186 (approx.)