Question

The difference between the simple interest and compound interest on Rs. $400$ at $5\%$ per annum for $2$ years is

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

Answer 1

The correct option is A Rs. $1$

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