Heena borrows 20,000 for 2 years at 8% compounded annually. She pays how much more than under simple interest?
A172
B320
C128
D160
Answer & Solution
Correct answer: C. 128
1. Compound interest is 1,600 plus 1,728.
2. Simple interest is 3,200.
3. The difference is 128.
_Source: syllabus Mathematics, Chapter 8, Comparing Quantities._
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