Multiple choice

Find the difference between simple interest and compound interest for 3 year on Rs. 24500 at 20% per annum.

  1. Rs. 3246

  2. Rs.3136

  3. Rs. 4210

  4. Rs. 3926
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = 24500 × 20 × 3 / 100 = Rs. 14700. Compound Interest after 3 years = 24500 × (1.2)^3 - 24500 = 24500 × 1.728 - 24500 = Rs. 17836. The difference is 17836 - 14700 = Rs. 3136. Option B is correct.

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