What is the difference between the compound interest and the simple interest on Rs 5,000 at 8 percent per year for 2 years?
Answer and explanation
Correct answer: A. Rs 32
- Step 1: For 2 years the difference is . Step 2. Here . Answer: Rs 32. Why not the others: Rs 16 halves the correct value, Rs 64 doubles it and Rs 40 uses 1 percent per year wrongly.
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