Question

Find the difference between the simple interest and the compound interest payable annually on a sum of Rs. 6,500 at 7% per annum for 3 years. (Correct to two decimal places.)

• A. Rs. 94.34
• B. Rs. 97.78
• C. Rs. 98.73
• D. Rs. 95.67

Answer 1

Answer:

B. Rs. 97.78

Solution: Given: Sum money = Rs, 6500 Interest Rate = 7% Time = 3 years Formula used: CI - SI = (P× R2)/1002 (3 + r/100) Calculations: D = (6500 × 49)/1002 (3 + 7/100) D = (65 × 49) /100 × (307/100) D = Rs. 97.78 ∴ The difference between simple interest and compound interest is Rs. 97.78.