Question

Find the difference between compound interest and simple interest on Rs 120000 for 3/2 years at the rate of 4%per annum.​

Answer 1

dfffffffffCorrect option is

B

Rs. 128

⇒  P=Rs.20,000,T=2years and R=8%.

⇒  S.I.=  

100

P×R×T

​

 

⇒  S.I.=  

100

20000×8×2

​

 

∴    S.I.=Rs.3200.

⇒  C.I.=P(1+  

100

R

​

)  

T

−P

⇒  C.I.=20,000×(1+  

100

8

​

)  

2

−20,000

⇒  C.I.=23,328−20,000

∴     C.I.=Rs.3328.

⇒   C.I.−S.I=Rs.3328−Rs.3200=Rs.128.