Question

Find the difference between Compound interest and simple interest for 2years of principle 4000 at the rate of 10% per annum?

• A. 35Rs
• B. 20Rs
• C. 40Rs
• D. 80Rs

Answer 1

Answer:

C. 40Rs

$CI-SI=P(\frac{R}{100})^2$

$CI-SI=4000(\frac{10}{100})^2$

$=\frac{4000}{100}$

$=40 Rs.$