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

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

[B].

Rs. 3

[C].

Rs. 3.75

[D].

Rs. 4

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.