Question

The difference between the compound interest and simple interest on Rs. 10000 at 7% per annum compounded annually after 2 years is

• A. Rs.50
• B. Rs.47
• C. Rs.43
• D. Rs.40
• E. Rs.49

Answer 1

The correct option is E

Rs.49

$S.I.=\frac{10000\times 2\times 7}{100}$

$=Rs.1400$

$C.I.=10000{(1+\frac{7}{100})}^2-10000$

$=Rs.1449$

$Difference=Rs.49$