Question

The difference between S.I. and C.I. on Rs. 1200 for one year at 10% per annum calculated half-yearly is

• A. Rs. 2.50
• B. Rs. 3
• C. Rs. 3.75
• D. Rs. 4

Answer 1

The correct option is B Rs. 3

Principal=1200 Rs.
Time=1 year
Interest rate=10%
$S.I.=\frac{1200\times 1\times 10}{100}=120Rs.$
For Compound interest
Time=1year=2 quarter
$Amount=1200(1+\frac{5}{100}{)}^2$
$\Rightarrow 1200\times \frac{105}{100}\times \frac{105}{100}$
$\Rightarrow 1323Rs.$
$C.I=1323-1200=123Rs.$
Difference between C.I and S.I=$123-120=3Rs.$