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find the difference between the simple and the compound interest at 5% per annum for 2 years on a principal of Rs. 2000.

  • a)
    5

  • b)
    105

  • c)
    4.5

  • d)
    None of these

Correct answer is option 'A'. Can you explain this answer?
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find the difference between the simple and the compound interest at 5%...
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find the difference between the simple and the compound interest at 5%...
Solution:

Given, Principal (P) = Rs. 2000, Rate of Interest (R) = 5%, Time (T) = 2 years

Simple Interest (SI) = (P x R x T)/100 = (2000 x 5 x 2)/100 = Rs. 200

Compound Interest (CI) = P[(1 + R/100)T - 1] = 2000[(1 + 5/100)2 - 1] = Rs. 210.25

Difference between Simple Interest and Compound Interest = CI - SI = 210.25 - 200 = Rs. 5

Therefore, the correct option is A) 5.
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find the difference between the simple and the compound interest at 5% per annum for 2 years on a principal of Rs. 2000.a)5b)105c)4.5d)None of theseCorrect answer is option 'A'. Can you explain this answer?
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