alleryWhat is the difference between the simple interest and compound interest on ₹4500 at 8% per annum for 3 years?
A₹88.70
B₹87.70
C₹87.50
D₹85.70
Answer & Solution
Correct answer: A. ₹88.70
1. SI = 4500 × 8 × 3 / 100 = ₹1080.
2. CI: amount = 4500 × (1.08)³ = 4500 × 1.259712 = ₹5668.704, so CI = ₹1168.704.
3. Difference = 1168.704 − 1080 = ₹88.70 (to nearest paisa).
_Source: RRB Group D CEN-02/2018 PYQ, Q.18._
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