Practice mode Compound Interest

What is the difference between the compound interest and the simple interest on Rs. 8,000 for 3 years at 5% per annum?

Correct answer A. Rs. 61

Explanation

CI = 8000 × (1.05³ − 1) = 1261 and SI = 8000 × 15/100 = 1200. Difference = Rs. 61.

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