Question
Calculate the difference between the simple interest and
compound interest accrued on an amount of Rs. 1600 over a period of 2 years at an annual interest rate of 20%.Solution
Desired difference = 1600 X [(1.2)Â 2Â - 1] - 1600 X 0.20 X 2 = 704 - 640 = Rs. 64 Hence, option b.
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