Multiple choice

Find the difference of SI and CI on a sum of Rs. 4608 for 2 years at 12.5% rate of interest.

  1. 90

  2. 72

  3. 144

  4. 150
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For Rs. 4608 at 12.5% for 2 years, CI = 4608 × (1.125)² - 4608 = Rs. 1158, SI = 4608 × 0.125 × 2 = Rs. 1152. The difference is Rs. 1158 - Rs. 1152 = Rs. 72. This follows the formula: CI - SI for 2 years = P × (R/100)². Here: 4608 × (0.125)² = 4608 × 0.015625 = 72.

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