Question:
The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:
[A].Rs. 2.50
Rs. 3
Rs. 3.75
Rs. 4
The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:
[A].
[B].
[C].
[D].
Answer: Option B
Explanation:
| S.I. = Rs | 1200 x 10 x 1 | = Rs. 120. | ||
| 100 |
| C.I. = Rs. | 1200 x | 1 + | 5 | 2 | – 1200 | = Rs. 123. | ||||
| 100 |
Difference = Rs. (123 – 120) = Rs. 3.