Question : Find the difference between compound interest and simple interest when a sum of Rs. 15,625 is invested for 3 years at 4% per annum.
Option 1: Rs. 76
Option 2: Rs. 96
Option 3: Rs. 56
Option 4: Rs. 86
Correct Answer: Rs. 76
Solution : Difference between simple interest and compound interest for 3 years$= P(3 + \frac{R}{100})(\frac{R}{100})^2$ where, $P$ = principal amount, $R$ = rate of interest. Given that $P$ = Rs. 15,625, $R$ = 4% per annum, and $T$ = 3 years ⇒ Difference = 15625 × (3 + $\frac{4}{100})(\frac{4}{100})^2$ = 15625 × ($\frac{76}{25})(\frac{1}{625})$ = Rs. 76 Hence, the correct answer is Rs. 76.
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Question : On a certain sum, the difference between compound interest and simple interest at 10% per annum for 2 years is Rs.250. The sum is _________.
Option 1: Rs.25,450
Option 2: Rs.26,550
Option 3: Rs.25,000
Option 4: Rs.26,000
Question : Find the difference between the simple interest and the compound interest payable annually on a sum of Rs. 6,500 at 7% per annum for 3 years. (Correct to two decimal places.)
Option 1: Rs. 94.34
Option 2: Rs. 97.78
Option 3: Rs. 98.73
Option 4: Rs. 95.67
Question : Rekha invested a sum of Rs. 12000 at 5% per annum compound interest. She received an amount of Rs. 13230 after $n$ years. Find $n$.
Option 1: 2.8 years
Option 2: 3 years
Option 3: 2.5 years
Option 4: 2 years
Question : What is the difference (in Rs.) between the compound interest and simple interest for 3 years on a Principal of Rs.1000 at 20% per annum?
Option 1: Rs. 64
Option 2: Rs. 120
Option 3: Rs. 128
Option 4: Rs. 136
Question : A certain sum (in INR) is invested at simple interest at y% per annum for $3 \frac{1}{2}$ years. Had it been invested at (y + 4)% per annum at simple interest, it would have fetched INR 4,452 more as interest. What is the sum?
Option 1: INR 42,400
Option 2: INR 31,800
Option 3: INR 30,400
Option 4: INR 42,800
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