The difference between compound interest and simple interest on a sum for two years at 8 per annum w...........

Quantitative Aptitude ( CCS) Compound Interest

The difference between compound interest and simple interest on a sum for two years at 8% per annum, where the interest is compounded annually is Rs.16. if the interest were compounded half yearly , the difference in two interests would be nearly

Rs.21.4

Rs24.64

Rs.42.24

Rs.23.45

छोटे Courses बड़े Results

Master Compound Interest

Prepare through Micro-courses

Try Now

Explanation:

For 1st year S.I =C.I.
Thus, Rs.16 is the S.I. on S.I. for 1 year, which at 8% is thus Rs.200
i.e S.I on the principal for 1 year is Rs.200
Principle = Rs.100*200/8*1 = Rs.2500
Amount for 2 years, compounded half-yearly
Rs.[2500*(1+4/100)4]=Rs.2924.4
C.I = Rs.424.64
Also, S.I=Rs.(2500*8*2/100)=Rs.400
Hence, [(C.I) - (S.I)] = Rs. (424.64 - 400) = Rs.24.64