Multiple choice

The difference between the simple and compound interest on Rs. 12,500 for 3 years at 4% is

  1. Rs. 60.50

  2. Rs. 60.80

  3. Rs. 60.00

  4. Rs. 60.20
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Difference between CI and SI for 3 years = P * (r/100)^2 * (3 + r/100). P = 12500, r = 4. Diff = 12500 * (0.04)^2 * (3.04) = 12500 * 0.0016 * 3.04 = 20 * 3.04 = 60.80.

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