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Jaishna Vardhan
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Question:-
Find the difference between the simple interest and compound interest on Rs.4800 for 2 years at 50% per annum, compound interest being reckoned annually.
(a) Rs.19
(b) Rs.18
(c) Rs.12
(d) Rs.27
Answer:-
Option (c) Rs.12 is the correct answer.
______________________________________
Step by step explanation:-
Given:-
- Principal (P) = Rs.4800
- Time (T) = 2 years
- Rate (R) = 5% p.a.
To Find:-
The difference between Simple Interest and Compound Interest.
Solution:-
We know,
=
=
=
Therefore Simple Interest = Rs.480
Now,
For Compound Interest,
We know,
=
=
=
=
=
=
=
Now,
CI =
=
=
Therefore, Compound Interest = Rs.492
Difference between CI and SI :-
= CI - SI
=
=
Therefore the difference between CI and SI is of Rs.12.
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