The difference between the simple interest and compound interest on ₹1,000 for 1 year at 20% per annum, compounded half-yearly, is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs 10
Difference between SI and CI = {P × R2}/1002
P = 1000
R = 10% {Becuase interest is compounded annually}
So, Difference between SI and CI = { 1000 × 100}/10000
⇒ 10