Question 62

The difference between simple interest and compound interest on ₹ 2500 at 4% per annum for two years is (in ₹):

Solution

Difference between S.I. and C.I. for 2 years = $$P(\frac{R}{100})^2$$

Here, principal = $$P=Rs.$$ $$2500$$ and rate of interest = $$r=4\%$$

=> Difference = $$2500\times(\frac{4}{100})^2$$

= $$2500\times\frac{1}{25\times25}=Rs.$$ $$4$$

=> Ans - (B)

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