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

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

S.I = Rs.(1200x10x1/100) = Rs.120. C.I = Rs[(1200x1+5/100)² -1200] = Rs.123. Difference = Rs.[123-120] = Rs. 3.

Rs.2.50
Rs.3
Rs.4
Rs.4.50

Correct Answer: Rs.3

Explanation:

S.I

= Rs.(1200x10x1/100)

= Rs.120.

C.I

= Rs[(1200x1+5/100)² -1200]

= Rs.123.

Difference

= Rs.[123-120]

= Rs. 3.

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