Multiple choice

What will be the difference between simple and compound interests at the rate of $10\% $p.a. on a sum of Rs $1000$ after $4$ years?

  1. Rs $64.10$
  2. Rs $40.40$
  3. Rs $32.10$
  4. Rs $31$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = 1000 * 0.10 * 4 = 400. Compound Interest = 1000 * (1.1^4 - 1) = 1000 * (1.4641 - 1) = 464.10. The difference is 464.10 - 400 = 64.10.

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