Question

The difference in simple and compound interest for Rs 2,000 at 10% per annum in 2 years. compounded annually is :
(A) Rs 20
(B) Rs 200
(C) Rs 400
(D) Rs 0

Answer 1

IN S.I,
P=RS 2000

R%=10%P.A

T=2 YEARS

INTEREST =P×T×R/100

=2000×2×10/100

=RS 400 IS YOUR INTEREST

AMOUNT = 2000+400=2400

IN C.I
P = RS 2000
R%=10%P.A
T=2 YEARS
INTEREST =P(1+R/100)
=2000×110/100
=110×20
=RS 2200 IS YOUR ANSWER

FOR 2 ND YEAR
P=RS2000
R%=10%P.A
T=2 YEARS

INTEREST = SAME FORMULA
110×22= rs 2,420 is ans

difference=(2420-2400)
=rs 20 is ans

Answer 2

Answer:

(A) Rs 20

Step-by-step explanation:

Find the simple interest:

Simple Interest = PRT/100

Simple Interest = (2000 x 10 x 2)/100 = Rs 400

Find the compound interest:

Compound Interest = P(1 + r/100)ⁿ - P

Compound Interest = 2000(1 + 10/100)² - 2000 = Rs 420

Find the difference:

Difference = 420 - 400 = Rs 20

Answer: (A) Rs 20