Multiple choice

The difference between the simple interest and compound interest (compounded annually) on Rs. 40,000 for 3 years at 8% per annum is

  1. Rs. 684.32

  2. Rs. 788.48

  3. Rs. 784.58

  4. Rs. 4000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The difference between CI and SI for 3 years is P * (r/100)^2 * (3 + r/100). Here, P = 40000 and r = 8. Difference = 40000 * (0.08)^2 * (3.08) = 40000 * 0.0064 * 3.08 = 256 * 3.08 = 788.48.

AI explanation

Using the formula for the difference between compound interest and simple interest for three years, the difference equals P times (R divided by 100) squared times (3 plus R divided by 100). Substituting the values 40000 for P and 8 for R gives 40000 times 0.000064 times 3.08, resulting in 788.48.

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