Question

Find the difference between the simple interest and the compound interest at 5% per annum for 2 years on principal of Rs. 2000.
A.5
B.10.5
C.4.5
D.5.5

Answer 1

Answer: A

Step-by-step explanation:

Answer 2

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P = Rs 2000
R = 5% p.a
T = 2 years
SI = PRT/100
$= \frac{2000 \times 5 \times 2}{100} \\ = 200$
Now
CI = P( (1+R/100)^n-1)

$= 2000 \times ((1 + \frac{5}{100} ) {}^{2} - 1) \\ = 2000 \times (( \frac{105}{100} ) {}^{2} - 1) \\ = 2000(1.1025 - 1) \\ = 2000 \times 0.1025 \\ = 205$
So Difference between compound interest and simple interest is
$= 205 - 200 \\ = 5 \: rupees$
So Option A is your answer

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