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
Correct Answer: Rs. 128
Solution : Given: Principal = Rs. 1000 Rate = 20% Time = 3 years Solve by using the formula for 3 years: $D=P×\frac{(300+R)R^{2}}{100^{3}}$, where $D$ = Difference between compound interest and simple interest, $P$ = Principal, $R$ = Rate of interest. Putting the values in the given formula, we have, $D=1000×\frac{(300+20)20^{2}}{1000000}$ ⇒ $D=\frac{1000×320×400}{1000000}$ ⇒ $D=32×4$ ⇒ $D$ = Rs. 128 Hence, the correct answer is Rs. 128.
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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 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
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 : On a certain sum of money lent out at 16% per annum, the difference between the compound interest for 1 year, payable half-yearly, and the simple interest for 1 year is Rs. 60. The sum is:
Option 1: Rs. 937.5
Option 2: Rs. 9,000
Option 3: Rs. 9,365
Option 4: Rs. 9,375
Question : On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
Option 1: Rs. 3.50
Option 2: Rs. 7
Option 3: Rs. 14
Option 4: Rs. 35
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