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Discussion

The difference between simple and compound interest on Rs. 1200 for one year at 10% per annum reckoned half-yearly is?

  • A.Rs. 2.50
  • B.Rs. 3
  • C.Rs. 3.75
  • D.Rs. 4

Answer: B

S.I. = (1200 * 10 * 1)/100 = Rs. 120 

C.I. = [1200 * (1 + 5/100)⊃2; - 1200] = Rs. 123 Difference = (123 - 120) = Rs. 3.

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