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What is the difference between the compound interest (compounded annually) and the simple interest on ₹15,000 at 8% per annum for 2 years (in ₹)?

Competition practiceSimple & Compound Interest

A96
B120
C48
D1200

Step-by-Step Solution

For 2 years the difference =

P \times (r /100)^{2} = 15, 000 \times (0.08)^{2} = 15, 000 \times 0.0064

= ₹96.

Answer: A) 96

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