Multiple choice

What will be the difference in simple and compound interest on Rs 2,000 after three years at the rate of 10% per annum?

  1. Rs 60

  2. Rs 42

  3. Rs 62

  4. Rs 40
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference for 3 years = P * (r/100)^2 * (3 + r/100). Difference = 2000 * (0.1)^2 * (3 + 0.1) = 2000 * 0.01 * 3.1 = 20 * 3.1 = 62.

AI explanation

The difference between simple and compound interest for three years can be found using the formula (Principal times Rate squared times (300 plus Rate)) divided by 100 cubed. Substituting the given values gives (2000 times 100 times 310) divided by 1000000, which simplifies to 62000000 divided by 1000000, resulting in Rs. 62.

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