Multiple choice

Find the difference between the simple interest andcompound interest earned on Rs. 6200 at the rate of 10%p.a. for 2 years.

  1. Rs. 62

  2. Rs. 78

  3. Rs. 124

  4. Rs. 128

  5. None of these
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A Correct answer
Explanation

For 2 years, the difference between CI and SI is P * (r/100)^2. Difference = 6200 * (10/100)^2 = 6200 * 0.01 = 62.

AI explanation

Using the formula for the difference between compound interest and simple interest for two years, which is principal times rate squared divided by 10000, we substitute the given values. This gives 6200 times 10 squared divided by 10000, which equals 6200 times 100 divided by 10000, resulting in Rs. 62.

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