Multiple choice

What is the diference between simple interest and compount interest on a sum of Rs. 250000 for 2 years, when the rate of interest is 4%? 250000 रू. की एक धनराशि पर 2 वर्षों में, 4 प्रतिशत की ब्याजदर पर साधारण ब्याज और चक्रवृद्धि ब्याज में अन्तर है।

  1. Rs. 300

  2. Rs. 400

  3. Rs. 500

  4. Rs. 2500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest for 2 years at 4% on Rs. 2,50,000 is 250000×4×2/100 = Rs. 20,000. Compound interest: After 1 year, amount = 250000(1 + 4/100) = 250000×1.04 = Rs. 2,60,000. After 2 years, amount = 260000×1.04 = Rs. 2,70,400. CI = 270400 - 250000 = Rs. 20,400. Difference = CI - SI = 20400 - 20000 = Rs. 400.

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