Question

Find the difference between Simple interest and Compound interest on Rs. $15,000$ for $2$ years, at $10\%$ per annum.

• A. $500$
• B. $150$
• C. $250$
• D. $350$

Answer 1

The correct option is B $150$

$P=Rs.15,000,T=2years$ and $R=10\%$

$\Rightarrow$ $A=P(1+\frac{R}{100}{)}^T$

$\Rightarrow$ $A=15000\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ $A=15000\times \frac{11}{10}\times \frac{11}{10}$

$\therefore$ $A=Rs.18,150$

$\Rightarrow$ $C.I.=A-P=Rs.18,150-Rs.15,000=Rs.3,150$

$\Rightarrow$ $S.I.=\frac{P\times R\times T}{100}=\frac{15000\times 10\times 2}{100}$

$\therefore$ $S.I.=Rs.3,000$

$\therefore$ $C.I.-S.I.=Rs.3,150-Rs.3000=Rs.150$