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    • Question

      The difference between compound interest and simple

      interest on ₹10,000 at 10% per annum for 2 years is ____.
      A Rs.125 Correct Answer Incorrect Answer
      B Rs.180 Correct Answer Incorrect Answer
      C Rs.100 Correct Answer Incorrect Answer
      D Rs.165 Correct Answer Incorrect Answer

      Solution

      ATQ,

      SI = (10,000 × 10 × 2) / 100 = ₹2000 CI = 10,000 × [(1 + 10/100)² − 1] = 10,000 × (1.21 − 1) = ₹2100 Difference = 2100 − 2000 = ₹100

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