Find the difference between compound interest and simple interest on a sum of Rs. 16000 in 3 years at 5% p.a.
Answer & explanation
Correct answer: option 2
5% = \(\frac{1}{20}\)
here,
Difference = 61R
Principal = 8000R = 16000
1R = 2
Difference = 61R = 61 × 2 = 122