What is the difference between compound interest and simple interest on Rs 4000 for 2 years at 10% per annum?

Answer and explanation

Correct answer: C. Rs 40

  1. Step 1: For 2 years the difference is P(R/100)^2.
  2. Step 2: 4000 x (10/100)^2 = 40.
Answer
Rs 40.

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