Q:
A sum of Rs. 8,000 is deposited for 3 years at 5% per annum compound interest (compounded annually). The difference of interest for 3 years and 2 years will be
Answer & Explanation
Answer: B) Rs. 441
Explanation: Given principal amount = Rs. 8000
Time = 3yrs
Rate = 5%
C.I for 3 yrs =
Now, C.I for 2 yrs =
Hence, the required difference in C.I is 1261 - 820 = Rs. 441
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