Question
A principal of ₹6000 is invested at a rate of 10% per
annum. What is the difference between the simple interest and compound interest earned after 2 years?Solution
Simple Interest = (6000 * 10 * 2) / 100 = ₹1200 Compound Interest: Amount = 6000 * (1 + 10/100) ² = ₹7260, so CI = 7260 - 6000 = ₹1260 Difference = CI - SI = 1260 - 1200 = ₹60 Answer: (B)
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