The difference between compound interest and simple interest on Rs 8000 at 5% P.a for 3 years is_________?

A. Rs 50
B. Rs 60
C. Rs 61
D. Rs 600

Explanation:

S.I = Rs(8000 × 5/100 ×3) = Rs 1200

C.I = Rs [8000 × (1+5/100)³– 8000
= Rs [(8000 × 21/20×21/20×21/20)-8000]
=Rs (9261-8000)=Rs 1261
(c.I)-(S.I) = Rs (1261 – 1200) = Rs61.

Correct Answer: Rs 61 ✔

Last Updated: February 07, 2020