The difference between simple interest and compound interest on ₹ 1200 for one year at 10% per annum reckoned… · ABC26GN4157
Subject: General Aptitude · Chapter: Compound Interest
The difference between simple interest and compound interest on ₹ 1200 for one year at 10\% per annum reckoned half-yearly is
(a)₹ 2.50
(b)₹ 3
(c)₹ 3.75
(d)₹ 4
(e)None of these
Answer
Explanation
S.I. $=₹\left(\frac{1200 \times 10 \times 1}{100}\right)=₹ 120$. $$\text { C.I. }=₹\left[1200 \times\left(1+\frac{5}{100}\right)^{2}-1200\right]=₹ 123 .$$ Difference $=₹(123-120)=₹ 3$.
Explanation as extracted from the printed page; notation may be imperfect.
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