The difference between the simple interest and the compound interest compounded annually on Rs 2000 ...........

Quantitative Aptitiude (CLAT) Compound Interest

The difference between the simple interest and the compound interest (compounded annually) on Rs. 2000 for 2 yr at 8% per annum will be

10 rs

20 rs

13 rs

25 rs

Explanation:

Formula to calculate the difference between compound interest and simple interest,
when the duration is two years is (Principal ×rate×rate)/(100×100),
putting the values (2000×8×8)/(100×100),
128000/10000 = 12.8 rs.(approx.)
it will approximately be equal to 13.
Henec, option 4 is the correct answer.