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6.Interest
medium
What is the difference between the compound interest and simple interest on ₹ $4000$ at $5 \%$ per annum for $2$ years?
A
$10$
B
$11$
C
$20$
D
$100$
Solution
(a) Compound amount
$=4000\left(1+\frac{5}{100}\right)^{2}=₹ 4410$
Simple interest $=\frac{4000 \times 5 \times 2}{100}=₹ 400$
Compound interest $=A-P$ $=₹(4410-4000)=₹ 410$
$\therefore \quad$ Difference in $CI$ and $SI$
$=410-400=₹ 10$
Quicker Method:
Difference $=\operatorname{Sum}\left(\frac{r}{100}\right)^{2}=4000\left(\frac{5}{100}\right)^{2}$
$=\frac{4000}{400}=₹ 10$
Standard 13
Quantitative Aptitude
