Multiple choice

If the difference between compound interest and simple interest on ₹10,000 at 10% per annum for 2 years is:

  1. 100

  2. 200

  3. 110

  4. 90
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. Here, 10000 * (10/100)^2 = 10000 * 0.01 = 100.

AI explanation

Using the direct formula for the difference between compound interest and simple interest for two years, we get Difference = P * R^2 / 100^2. Substituting the given values, we have 10000 * 10^2 / 100^2 = 100. The difference is Rs. 100.

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