The difference between CI and SI for two years on sum of Rs.3200 at 25% per annum is:
Answer & explanation
Correct answer: option 3
25% = \(\frac{1}{4}\)
⇒ \(\frac{Diff.}{Principal}\) = \(\frac{1^2}{4^2}\) = \(\frac{1}{16}\)
⇒ 16R = 3200
⇒ 1R = 200
⇒ Difference = 1R = 1 × 200 = 200