The difference between CI and SI for two

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The difference between CI and SI for two years on sum of Rs.3200 at 25% per annum is:

Options:

100

125

200

225

Correct Answer:

200

Explanation:

25% = \(\frac{1}{4}\)

⇒ \(\frac{Diff.}{Principal}\) = \(\frac{1^2}{4^2}\) = \(\frac{1}{16}\)

⇒ 16R = 3200

⇒ 1R = 200

⇒ Difference = 1R = 1 × 200 = 200