Find the difference between simple interest and compound interest for a aum of Rs. 8,000

Find the difference between simple interest and compound interest for a aum of Rs. 8,000 lent at 10% p.a. in 2 years
A. 90
B. 100
C. 80
D. 70

Anurag Mishra Professor Asked on 29th February 2016 in Maths.
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1 Answer(s)

Answer: (c) 80 

Solution:-
Given-
Principal = Rs. 8, 000,   Rate = 10%  &   Time = 2 years

Simple Interest = 8, 000 x 10 x 2/100
 = 80 x 10 x 2
 = Rs. 1, 600

Compound Interest = 8, 000 (1 + 10/100)^2  – 8, 000
 = 8, 000 x 11 x 11/10 x 10 – 8, 000
 = 80 x 11 x 11 – 8, 000
 =  9, 680 – 8, 000
 = Rs. 1, 680

Then, the difference between compound interest and simple interest = 1680 – 1600
 = Rs. 80. 

Hence, the correct answer is option (c) 80. 

Anurag Mishra Professor Answered on 1st March 2016.
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