Multiple choice

Find the difference between the simple interest and the compound interest for two years on a sum of 28000 at 25% p.a. rate of interest

  1. 1750

  2. 2000

  3. 2250

  4. 3000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For 2 years, the difference between CI and SI is P * (R/100)^2. Difference = 28000 * (25/100)^2 = 28000 * (1/4)^2 = 28000 * (1/16) = 1750.

AI explanation

Use the formula for the difference between compound interest and simple interest for two years: Difference = P multiplied by (R/100) squared. Substituting the given values gives 28000 multiplied by (25/100) squared, which becomes 28000 multiplied by 0.0625. The difference is 1750.

Keep practicing — related questions