Question

Find the difference between compound interest and simple interest on an amount of ₹ 15,000 for 2 years at 8 % per annum

• A.
• B.
• C.
• D.

Answer 1

The correct option is C

Given P = ₹ 15000 , T = 2 years R = 8 %

Simple Interest = $\frac{P\times T\times R}{100}$

= $\frac{15000\times 2\times 8}{100}$

= ₹ 2400

C.I for the first year

C. I = $\frac{P\times T\times R}{100}$

= $\frac{15000\times 1\times 8}{100}$

= ₹ 1200

Principal for the second year

= 15000 + 1200

= ₹ 16200

C.I for second year

C. I = $\frac{P\times T\times R}{100}$

= $\frac{16200\times 1\times 8}{100}$

= ₹ 1296

Total C.I for two years = ₹ 1200 + 1296

= ₹ 2496

Difference between C.I and S.I = 2496 - 2400

= ₹ 96