Multiple choice

Find the difference between the compound interest and the simple interest on Rs. 32000 at 10% p.a. for 4 years. 32000 की धनराशि पर 4 वर्ष के लिए 10% वार्षिक ब्याज की दर से चक्रवृद्धि ब्याज और साधारण ब्याज का अन्तर बताइए।

  1. Rs. 2051.20

  2. Rs. 2052.50

  3. Rs. 2025.20

  4. Rs. 2501.20
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = 32000 × 10 × 4/100 = Rs. 12800. Compound Interest = 32000(1.1^4 - 1) = Rs. 14851.20. The difference = CI - SI = 14851.20 - 12800 = Rs. 2051.20, which occurs because compound interest earns interest on the accumulated interest each year.

Keep practicing — related questions