Advertisement

### Question

What is the difference between the simple interest and compound interest at the rate of 8% for 1 year? The compounding is half-yearly, and the principal is Rs. 30000.

**A**

Rs. 48.

**B**

Rs. 148.

**C**

Rs. 98.

**D**

Rs. 248.

**Soln.**

**Ans: a**

The simple interest SI = (P × r)/100 = (30000 × 8)/100 = Rs. 2400. Compound interest will have half interest rate and n = 2. By shortcut formula, we have CI = ${P × R × (R + 200)}/10000$ = ${30000 × 4 × (4 + 200)}/10000$ = Rs. 2448. The difference = Rs. 48.