Simple & Compound Interest · Question 6 · Medium
What is the difference between the compound interest and simple interest on ₹8,000 at 5% per annum for 2 years?
- ₹40
- ₹10
- ₹20
- ₹25
Answer and explanation
Answer: C. ₹20
Explanation: For 2 years the difference is P(R/100)^2 = 8,000 × 0.05 × 0.05 = ₹20.
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