The difference between simple and compound interest on Rs. 1200 for one year at 10% per annum reckoned half-yearly is________?

A. Rs. 2.50
B. Rs. 3
C. Rs. 3.75
D. Rs. 4
Explanation:
S.I. = (1200 * 10 * 1)/100 = Rs. 120
C.I. = [1200 * (1 + 5/100)2 – 1200] = Rs. 123 Difference = (123 – 120) = Rs. 3.