Arithmetichard · Past Paper

The difference between compound interest and simple interest on Rs 5000 for 2 years at 12% per annum is:

ARs 72
BRs 80
CRs 96
DRs 100

✓ Correct Answer: ARs 72

Difference = P(R/100)^2 = 5000(12/100)^2 = 5000(144/10000) = 5 * 14.4 = 72.

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