The difference between simple and compound interest on Rs. 1200 for a year at a rate of 10% per annum calculated half-yearly is:
A. Rs. 2.50
B. Rs. 3
C. Rs. 3.75
D. Rs. 4
Answer:B
The difference between simple and compound interest on Rs. 1200 for a year at a rate of 10% per annum calculated half-yearly is:
A. Rs. 2.50 B. Rs. 3 C. Rs. 3.75 D. Rs. 4
Explanation: S.I = Rs 1200 × 10 x 1 /100 = Rs 120 C.I. = Rs. 1200 x 1 +5/100 to the power C.I. = Rs. 1200 x 1 +5/100 to the power C.I. = Rs. 2 x 1200 = 123 rupees (123 - 120) Equals Rs. 3 (difference)