Question

Find the difference between Simple interest and Compound interest on Rs. $30,000$ for $2$ years, at $10\%$ per annum.

• A. $100$
• B. $200$
• C. $300$
• D. $400$

Answer 1

The correct option is C $300$

$P=Rs.30,000,T=2years$ and $R=10\%$

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

$\Rightarrow$ $A=30000\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ $A=30000\times \frac{11}{10}\times \frac{11}{10}$

$\therefore$ $A=Rs.36,300$

$\Rightarrow$ $C.I.=A-P=Rs.36,300-Rs.30,000=Rs.6,300$

$\Rightarrow$ $S.I.=\frac{P\times R\times T}{100}=\frac{30000\times 10\times 2}{100}$

$\therefore$ $S.I.=Rs.6,000$

$\therefore$ $C.I.-S.I.=Rs.6300-Rs.6000=Rs.300$