What will be the difference between S.I. and C.I. on a sum of ₹ 15000 for 2 years at the same rate of… · ABC26GN4156

Subject: General Aptitude · Chapter: Compound Interest

What will be the difference between S.I. and C.I. on a sum of ₹ 15000 for 2 years at the same rate of interest of $12 \frac{1}{2} \%$ per annum? (R.R.B., 2006)
(a)` 230.550
(b)` 234.375
(c)` 250.129
(d)` 324.357
Answer
Answer (as printed): B
Explanation
S.I. $=₹\left(15000 \times \frac{25}{2} \times 2 \times \frac{1}{100}\right)=₹ 3750$. $$\begin{aligned} \text { C.I. } & =₹\left[15000\left(1+\frac{25}{2 \times 100}\right)^{2}-15000\right] \\ & =₹\left(15000 \times \frac{9}{8} \times \frac{9}{8}-15000\right) \\ & =₹(18984.375-15000)=₹ 3984.375 . \end{aligned}$$

Explanation as extracted from the printed page; notation may be imperfect.

Study loop for Compound Interest

1. Practise the PYQsPrevious-year questions, with answers

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