What is the difference between compound interest, compounding annually, and simple interest on ₹8,300 at 10% per annum for 2 years?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹83
Given that
Principal = ₹8300
Rate = 10% per annum
Time = 2 years
Formula used
C.I. - S.I. for 2 years = P(R/100)2
C.I. - S.I. = 8300 × (10/100)2 = ₹83