Home › MCQs › Basic Mathematics › Question #2842
Back to Questions
Basic Mathematics QUESTION #2842
Question 1
What is the difference between Compound Interest and Simple Interest on Rs. 10,000 at \(5\%\) per annum for 2 years?
  • Rs. 20
  • Rs. 25✔️
  • Rs. 30
  • Rs. 50
Correct Answer Explanation
SI \(= \dfrac{10000 \times 5 \times 2}{100} = 1000\). CI: Amount \(= 10000 \times (1.05)^2 = 10000 \times 1.1025 = 11025\). CI \(= 1025\). Difference \(= 1025 - 1000 = Rs.\ 25\).