Compound Interest Practice Test 4

Question : 25 of 40

Marks: +1, -0

The difference between simple and compound interest on a sum of Rs. P for 2 years at r% per annum will be

Solution:

Required difference

=P[(1+r/100)^2-1]-{P×r×2}/100

=P({2r}/100+(r/100)^2-{2r}/100)

=P/({100/r})^2

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