Question

What is difference between C.I. and S.I. of Rs.12000 on 5% per annum for 2 years?

• A. $13,800$
• B. $25,200$
• C. $30,100$
• D. $40,100$

Answer 1

The correct option is A $13,800$

$SI=\frac{p\times t\times r}{100}$

$=\frac{12000\times 5\times 2}{100}$

$=1200$

$CI=p{(1+\frac{r}{100})}^2-p$

$=12000(1+0.5{)}^2-12000$

$=12000\left(2.25\right)-12000$

$=15000$

Difference between CI and SI $=15000-1200$

$=13800$