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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