Multiple choice

Find the difference between compound interest and simple interest on a certain sum of money at the same rate for 1 year.

  1. Rs. 100

  2. 0

  3. Greater than zero

  4. Less than zero

  5. Data insufficient
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For a period of 1 year, simple interest and compound interest are identical because the interest is only calculated on the principal once.

AI explanation

There is no difference between compound interest and simple interest for a period of one year, because no interest is added to the principal during that time to earn additional interest. Therefore, both the compound interest and the simple interest for one year are exactly the same. The difference between them is 0.

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