Question

The difference between simple interest and compound interest on Rs $1200$ for one year at $10$ per annum reckoned half-yearly is __________.

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Answer 1

S.I = $\frac{1200\times 10\times 1}{100}$ = $Rs120$
C.I = $1200\times {(1+\frac{5}{100})}^2-1200$ = $Rs123$
Difference = $123-120$ = Rs.3