Question

The difference between the simple interest and the compound interest (compounded annually) on Rs 2000 for 2 years at 8% per annum will be

• A. Rs 10
• B. Rs 20
• C. Rs 13
• D. Rs 25

Answer 1

The correct option is C Rs 13

When time is 2 years than
Difference of CI and SI = P[${\frac{R}{100}}^2$]
D = 2000 ($\frac{8}{100}$)($\frac{8}{100}$) = $\frac{128}{10}$
= 12.8 = Rs 13