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What is the difference between compound interest and simple interest for 2 yr on the sum of Rs. 1250 at 4% pa?1. Rs. 32. Rs. 43. Rs. 24. Rs. 8 |
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Answer» Correct Answer - Option 3 : Rs. 2 Given: Time = 2 years Sum = Rs.1250 Rate = 4% Formula Used: R = √(D/P) × 100 where, R = Rate P = Sum D = CI – SI Calculation: R = √(D/P) × 100 ⇒ 4 = √(D/1250) × 100 ⇒ 4/100 = √(D/1250) Squarring on both sides, ⇒ 16/10,000 = D/1250 ⇒ D = (16 × 1250)/10,000 ⇒ D = 2 ∴ Difference between CI and SI is Rs.2. |
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