Question

The difference between the simple interest and the compound interest (compounded annually) on ₹2000 for 2 yr at 8% per annum will be

Options

• ₹ 10

• ₹ 20

• ₹ 13

• ₹ 25

Answer 1

₹ 13

Explanation:

When time is 2 years then

A difference of CI and SI `="p"(("R")/100)^2`

`"D" = 2000(8/100)(8/100)=128/10`

= 12.8 ≈ ₹ 13