The difference between CI and SI for two years on sum of Rs.3500 at 20% per annum is:
Answer & explanation
Correct answer: option 2
20% = \(\frac{1}{5}\)
⇒ \(\frac{Diff.}{Principal}\) = \(\frac{1^2}{5^2}\) = \(\frac{1}{25}\)
⇒ 25R = 3500
⇒ 1R = 140
⇒ Difference = 1R = 1 × 140 = 140