Question

The difference belween the simple interest and compound interest on Rs 400 at 5% per annum for 2 years is

• A. Re 1
• B. Rs 10
• C. Rs 12
• D. Rs 15

Answer 1

The correct option is A Re 1

Short cut: $C.I.-S.I.=P\times {\left(\frac{r}{100}\right)}^2$
$=400\times {\left(\frac{5}{100}\right)}^2=1$.