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What is the difference in the interest earned at Rs. 5000 when it is lent at 10% p.a. for four years at simple interest and compound interest?
  • a)
    Rs. 275
  • b)
    Rs. 300
  • c)
    Rs. 320
  • d)
    Rs. 350
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is the difference in the interest earned at Rs. 5000 when it is l...
Interest from simple interest = PRT/100
The formula for CI at annual compound interest, including principal sum, is: 
Where:
CI = Compound Interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
Here n = 1
Difference in interest earned = (5000(1 + 10/100)4 - 5000) - (5000 × 10 × 4)/100
Difference in interest = Rs. 320.50
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What is the difference in the interest earned at Rs. 5000 when it is lent at 10% p.a. for four years at simple interest and compound interest?a)Rs. 275b)Rs. 300c)Rs. 320d)Rs. 350Correct answer is option 'C'. Can you explain this answer?
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What is the difference in the interest earned at Rs. 5000 when it is lent at 10% p.a. for four years at simple interest and compound interest?a)Rs. 275b)Rs. 300c)Rs. 320d)Rs. 350Correct answer is option 'C'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about What is the difference in the interest earned at Rs. 5000 when it is lent at 10% p.a. for four years at simple interest and compound interest?a)Rs. 275b)Rs. 300c)Rs. 320d)Rs. 350Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference in the interest earned at Rs. 5000 when it is lent at 10% p.a. for four years at simple interest and compound interest?a)Rs. 275b)Rs. 300c)Rs. 320d)Rs. 350Correct answer is option 'C'. Can you explain this answer?.
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