Practicing Success
The difference between the compound interest and the simple interest on a sum of ₹8,000 for 2 years at the rate of 5% p.a. is: |
₹10 ₹30 ₹40 ₹20 |
₹20 |
The formula used here is, Difference in the simple interest and compound interest on a certain sum at R% per annum in 2 years = (CI - SI) = $\frac{PR^2}{100^2}$ ⇒ Difference in the simple interest and compound interest on Rs.8000 at 5% per annum in 2 years = x ⇒ x = $\frac{P5^2}{100^2}$ ⇒ x = 8000 x \(\frac{1}{400}\) ⇒ x = 20 Thus, The difference in CI and Si = Rs.20 |