IBPS SO Prelims Exam Model Paper 6

In Simple interest,
Principal, P = Rs. 5700
Rate, R = 5%
Time, T = 2 years
∴ Simple interest earned,
⇒

(5700×5×2)

100

⇒ Rs. 570
In compound interest,
Principal, P = Rs. 5700
Rate, R = 5%
No. of years, n = 2
∴ Compound interest earned,
⇒ P (1+

R

100

)n - P
⇒ 5700 × (1+

5

100

)2 - 5700 = 6284.25 - 5700 = Rs. 584.25
∴ Difference between the simple and compound interest on Rs. 5700 at the rate of 5% per annum in 2 years = 584.25 - 570 = Rs. 14.25