What is the difference between the compound interest and the simple interest on 5000 for 2 years at 10% per year (compounded annually)?
Answer and explanation
Correct answer: D.
- Step 1: Simple interest: . Step 2. Compound interest: . Difference: . **Answer: . Why not the others:** gives the simple interest only; gives the compound interest only; doubles the difference.
Practise more Applied arithmetic and geometry.
Free questions with an explanation for every one, and full timed SEE (Secondary Education Examination, Nepal) mock tests.
More Applied arithmetic and geometry questions
- The price of a camera is 400. It is first increased by 20% and then the new price is decreased by 30%. What is the final price?
- 35% of a number is 28. What is the number?
- The mean of 6 numbers is 60. Of them, 5 are 53, 52, 68, 69, 48. What is the remaining number?
- A train travels from A to B at 60 km/h and returns along the same road at 30 km/h. What is the average speed for the whole trip, in km/h?
- One pipe fills a pool in 3 hours and another pipe fills it in 6 hours. How many hours does it take to fill the pool when both pipes are open…
- What is the difference between the compound interest and the simple interest on 1000 for 3 years at 4% per year (compounded annually)?