The difference between the simple interest and compound interest on Rs1 000 for 1 year at 20 per ann...........

Quantitative Aptitude (CHSL) Compound Interest

The difference between the simple interest and compound interest on Rs1,000 for 1 year at 20% per annum, compounded halfyearly, is:

This questions was previously asked in

SSC CHSL 25th May 2022 Shift-1

Rs 8

Rs 5

Rs 10

Rs 12

- Simple interest is calculated as:

$$ SI = \frac{{P \times R \times T}}{100} $$

Where $ P = Rs 1000 $, $ R = 20\% $, and $ T = 1 $ year.

This gives $ SI = \frac{{1000 \times 20 \times 1}}{100} = Rs 200 $.

- Compound interest with half-yearly compounding is calculated using:

$$ A = P \left(1 + \frac{R}{2 \times 100}\right)^{2T} $$

Using $ P = Rs 1000 $, $ R = 20\% $, and $ T = 1 $ year, we find:

$$ A = 1000 \left(1 + \frac{20}{200}\right)^{2} = 1000 \left(1.1\right)^{2} = Rs 1210 $$.

Compound interest $ CI = A - P = 1210 - 1000 = Rs 210 $.

- Difference between CI and SI:

$ 210 - 200 = Rs 10 $.

- Therefore, the correct answer is Option 3: Rs 10.

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