The simple interest on a certain sum for 2 years at the rate of 5 per annum is Rs 160 What would be ...........

Quantitative Aptitude ( CCS) Compound Interest

The simple interest on a certain sum for 2 years at the rate of 5% per annum is Rs.160. What would be the difference of compound interest and simple interest for the same period and at the same rate of interest?

Rs.2

Rs.10

Rs.6

Rs.4

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Explanation:

For 2 years
SI = 5* 2= 10 % of the sum
CI = 5 + 5+ (5*5)/100 = 10.25% of the sum
required diff. = 10.25 – 10 = 0.25% of the sum
Therefore ,
the required diff. = (160/10) * 0.25 = Rs.4

Hence, option 4 is the correct answer.