Multiple choice

Find the difference between Simple interest and compound interest on principle ₹135793 at the rate of interest 23% per annum for 1 year?

  1. $₹31232.39$
  2. $₹167025.39$
  3. $₹0$
  4. $₹62464.78$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest (SI) = P × R × T / 100 = 135793 × 23 × 1 / 100 = ₹31,232.39. Compound Interest (CI) for 1 year = P × (1 + R/100)^1 - P = P × R/100 = same as SI. Therefore, the difference between CI and SI for exactly 1 year is always zero, regardless of principal amount or rate. This is because compound interest only differs from simple interest when interest is compounded multiple times within the time period.

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