The difference between Compound interest and Simple interest on Rs. 6000
Posted on 01-05-2023
Ques - The difference between Compound interest and Simple interest on Rs. 6000 for 1 years at 20% per annum reckoned half yearly is :
(a) 120
(b) 60
(c) 180
(d) 72
Solution -
Given,
P = 6000
R = 20/2 = 10% (rate of interest on half yearly)
T = 2 (half yearly for 1 year)
Now,
SI = (P×R×T) / 100
SI = (6000 × 10 × 2) / 100
SI = 1200
And,
A = 6000 (1 + (r/100))n
A = 6000 (1 + (10/100))2
A = 6000 (110/100)2
A = 6000 (12100 / 10000)
A = 7260
CI = A - P
CI = 7260 - 6000
CI = 1260
Now,
The difference between CI and SI,
= CI - SI
= 1260 - 1200
= 60
Hence,
The correct answer is option (b) 60.