Multiple choice

The difference between compound interest and simple interest for 2 years at the rate of 10% over principal amount of Rs. x is Rs. 10. What is the value of x?

  1. Rs. 100

  2. Rs. 1000

  3. Rs. 500

  4. Rs. 5000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 2 years, the difference between CI and SI is P*(r/100)^2. Here, 10 = x*(10/100)^2 = x*(1/100) = x/100. So x = 1000.

AI explanation

Using the formula for the difference between compound interest and simple interest for 2 years, the difference equals Principal multiplied by Rate squared divided by 10000. Substituting the given values gives 10 equals x multiplied by 10 squared divided by 10000, which simplifies to 10 equals x divided by 100. Solving for x gives 1000, meaning the value of x is Rs. 1000.

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