What is the difference between compound interest and simple interest on Rs 5000 for 2 years at 20% per annum?

Answer and explanation

Correct answer: D. Rs 200

  1. Step 1: For 2 years the difference is P(R/100)^2.
  2. Step 2: 5000 x (20/100)^2 = 200.
Answer
Rs 200.

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