Multiple choice

The difference between simple interest and compound interest at yearly intervals, on Rs. $3000$ for $2$ years at $6\%$ is

  1. Rs. $20.80$
  2. Rs. $15.80$
  3. Rs. $10.80$
  4. Rs. $9.80$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest for 2 years is 3000 * 0.06 * 2 = 360. Compound interest is 3000 * (1 + 0.06)^2 - 3000 = 3000 * 1.1236 - 3000 = 370.80. The difference is 370.80 - 360 = 10.80.

AI explanation

For two years, the difference between compound interest and simple interest is found using the formula P(R/100)^2. Here, the principal is Rs. 3000 and the rate is 6%. The difference is calculated as 3000 multiplied by (6/100) squared, which equals 3000 multiplied by 0.0036. The resulting difference is Rs. 10.80.

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