Question

The difference between simple interest and compound interest at yearly intervals, on Rs. $3000$ for $2$ years at $6\%$ is

• A. Rs. $20.80$
• B. Rs. $15.80$
• C. Rs. $10.80$
• D. Rs. $9.80$

Answer 1

The correct option is C Rs. $10.80$

Simple interest $=\frac{3000\times 6\times 2}{100}=360$
Compound interest $=3000{(1+\frac{6}{100})}^2-3000=18\times 20.6=370.8$
$\therefore$ Difference is $Rs.10.8$.