Source: Previous Question Papers
Find the difference between the compound interest and simple interest for 2 years on Rs. 10,000 at the rate 12 p.c.p.a.
Options
Option A
124
Option B
120
Option C is correct
144
Option D
240
Explanation
The difference between compound interest (CI) and simple interest (SI) for 2 years is given by the formula P * (R/100)^2. Given P = Rs. 10,000, R = 12 p.c.p.a. So, Difference = 10000 * (12/100)^2 = 10000 * (0.12)^2 = 10000 * 0.0144 = Rs. 144.