Find the difference between compound interest and simple interest for 2 years on a sum of Rs 11000 at a rate of 11% per annum.
Answer & explanation
Correct answer: option 3
Formula used:
(CI - SI) for 2 years = P($\frac{R}{100})^2$
Given, P = 11000, R = 11
Thus, CI - SI = 11000($\frac{11}{100})^2$
= 11000 x P($\frac{121}{10000})$
= Rs 133.1