Multiple choice

Amita borrowed Rs. 10,000 at simple interest for 2 years at 10% & she lent it to her friend immediately for the same time & at the same rate at compound interest. How much money will she gain?

  1. 200

  2. 100

  3. 150

  4. 250

  5. 175
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

(S.I. for two years = Rs. 10,000 X 2 X 10 = Rs. 2000  100 Interest for first year = Rs. 10000 X 1 X 10 = Rs.1000   100 Interest for second year = Rs. 1000 + 10% of Rs. 1000 = Rs. 1100 Total interest for 2 years (C.I.) = Rs. 2100 Difference = Rs. 100)

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