Multiple choice

The difference between C.I (Compound Interest) and S.I. (Simple Interest) on a sum of Rs. $4,000$ for 2 years at $5$% p.a. payable is:

  1. Rs. $20$
  2. Rs. $10$
  3. Rs. $50$
  4. Rs. $60$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 2 years, the difference between CI and SI is given by P * (r/100)^2. Here, 4000 * (5/100)^2 = 4000 * (0.05)^2 = 4000 * 0.0025 = 10.

AI explanation

The difference between compound interest and simple interest for two years is calculated as the principal multiplied by the square of the rate divided by 10000. Substituting the given values, the difference equals 4000 multiplied by 5 squared divided by 10000, which simplifies to 4000 multiplied by 25 divided by 10000. This equals 100000 divided by 10000, resulting in a difference of 10.

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