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What is the difference between the compound interest and the simple interest on ₹5,000 for 2 years at 8% per annum?

1249Medium DSSSB TGT Computer Science 0 replies 1 views
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What is the difference between the compound interest and the simple interest on ₹5,000 for 2 years at 8% per annum?

  • A₹16
  • B₹24
  • C₹32
  • D₹40
Correct answer: C

Explanation

For 2 years the difference = P(r/100)² = 5000 × (0.08)² = ₹32.

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