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What is the difference between the compound interest and the simple interest on ₹10,000 for 3 years at 10% per annum, compounded annually?

2695Hard UPSC Principal Vice Principal 0 replies 1 views
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What is the difference between the compound interest and the simple interest on ₹10,000 for 3 years at 10% per annum, compounded annually?

  • A₹210
  • B₹300
  • C₹310
  • D₹331
Correct answer: C

Explanation

CI = 10,000 × (1.1³ - 1) = ₹3,310. SI = ₹3,000. Difference = ₹310.

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