What is the difference between the compound interest compounded annually and the simple interest on Rs. 5000 at the rate of 8% per annum for 2 years?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs. 32.
Difference between CI and SI for 2 years = P × (r/100)2
= 5000 × (8/100)2
= Rs 32