alleryFor ₹5000 at 10% per annum for 2 years, the compound interest exceeds the simple interest by:
A₹50
B₹0
C₹100
D₹500
Answer & Solution
Correct answer: A. ₹50
SI = 5000×10×2/100 = 1000
CI = 5000(1.21−1) = 1050
difference = ₹50 (one year's interest on the first year's interest).
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