Multiple choice

Find the difference between simple interest and compound interest for a sum of Rs. $3000$ lent at $8 \%$ p.a. in $2$ years.

  1. $19.20$
  2. $29.20$
  3. $39.20$
  4. $49.30$
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A Correct answer
Explanation

For 2 years, the difference between CI and SI is P * (R/100)^2. Here, 3000 * (8/100)^2 = 3000 * 0.0064 = 19.20.

AI explanation

Using the formula for the difference between compound interest and simple interest for two years, the difference equals Principal multiplied by (Rate divided by 100) squared. Substituting the given values, the difference is 3000 multiplied by (8 divided by 100) squared, which is 3000 multiplied by 0.0064. This calculation results in 19.20.

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