What is the difference between compound interest and simple interest on Rs 10000 for 2 years at 5% per annum?

Answer and explanation

Correct answer: B. Rs 25

  1. Step 1: For 2 years the difference is P(R/100)^2.
  2. Step 2: 10000 x (5/100)^2 = 25.
Answer
Rs 25.

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