Question

What will be the difference between compound interest and simple interest if the rate of interest is 10% per annum on a sum of Rs.1000 after 4 years?

• A. Rs.32.05
• B. Rs.64.10
• C. Rs.32.10
• D. Rs.6.41
• E. Rs.641

Answer 1

The correct option is B

Rs.64.10

$S.I.=\frac{1000\times 10\times 4}{100}=Rs.400$

$C.I.=1000(1+\frac{10}{100}{)}^4-1000=Rs.464.10$

$Difference=Rs.64.10$