Multiple choice

What will be the difference between the simple and compound interest on Rs. 368 after three years at the rate of 10 percent per annum? 368 रू. की धनराशि पर 10 प्रतिशत ब्याज की दर से तीन वर्ष के बाद साधारण ब्याज और चक्रवृद्धि ब्याज में अन्तर क्या होगा?

  1. Rs. 11

  2. Rs. 11.408

  3. Rs. 12

  4. Rs. 10

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal = Rs. 368, Rate = 10%, Time = 3 years. Simple Interest = 368 × 10 × 3/100 = Rs. 110.4. Compound Interest = 368 × (1 + 10/100)^3 - 368 = 368 × 1.331 - 368 = Rs. 121.568. Difference = 121.568 - 110.4 = Rs. 11.408. The small difference occurs because compound interest accumulates interest on interest over three years.