Find the difference between C.I and S.I for 1 year on principal amount

1.	Find the difference between C.I and S.I for 1 year on principal amount Rs.12500. If the rate of interest is 4 percent and interest calculated according to half-yearly?1. Rs. 52. Rs. 73. Rs. 94. Rs. 85. None of these
Answer» Correct Answer - Option 1 : Rs. 5 Given: Principal = Rs.12500 Time = 1 year Actual Rate = 4% But due to half-yearly Rate = 2 percent Formula: C.I – S.I for 2 years = (P × R²)/100 × 100 Calculation: Note: Due to half-yearly we use formula C.I – S.I for 2 year We know that – C.I – S.I for 2 years = (P × R²)/100 × 100 …………… (1) Now, Put all the given values in equation (1) then we get C.I – S.I for 2 years = (12500 × 2²)/100 × 100 ⇒ (12500 × 4)/100 × 100 ⇒ (125 × 4)/100 ⇒ 125/25 ⇒ 5 ∴ The Difference between C.I and SI for 1 year is Rs. 5

Find the difference between C.I and S.I for 1 year on principal amount Rs.12500. If the rate of interest is 4 percent and interest calculated according to half-yearly?1. Rs. 52. Rs. 73. Rs. 94. Rs. 85. None of these

Answer» Correct Answer - Option 1 : Rs. 5

Given:

Principal = Rs.12500

Time = 1 year

Actual Rate = 4%

But due to half-yearly

Rate = 2 percent

Formula:

C.I – S.I for 2 years = (P × R²)/100 × 100

Calculation:

Note: Due to half-yearly we use formula C.I – S.I for 2 year

We know that –

C.I – S.I for 2 years = (P × R²)/100 × 100 …………… (1)

Now,

Put all the given values in equation (1) then we get

C.I – S.I for 2 years = (12500 × 2²)/100 × 100

⇒ (12500 × 4)/100 × 100

⇒ (125 × 4)/100

⇒ 125/25

⇒ 5

∴ The Difference between C.I and SI for 1 year is Rs. 5

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