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Mathematics

The difference between C.I. and S.I. at 10% in 2 years on ₹ 100 is:

  1. ₹ 1

  2. ₹ 41

  3. ₹ 00

  4. none of these

Compound Interest

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Answer

For S.I. :

P = ₹ 100

R = 10%

T = 2 years

I=P×R×T100=100×10×2100=2000100=20.I = \dfrac{P \times R \times T}{100} \\[1em] = \dfrac{100 \times 10 \times 2}{100} \\[1em] = \dfrac{2000}{100}\\[1em] = 20.

For C.I. :

For 1st year :

P = ₹ 100

T = 1 year

R = 10%

I=P×R×T100=100×10×1100=1000100=10.I = \dfrac{P \times R \times T}{100}\\[1em] = \dfrac{100 \times 10 \times 1}{100}\\[1em] = \dfrac{1000}{100}\\[1em] = 10.

Amount = P + I = ₹ 100 + ₹ 10 = ₹ 110

For 2nd year :

P = ₹ 110

R = 10%

T = 1 year

I=P×R×T100=110×10×1100=1100100=11.I = \dfrac{P \times R \times T}{100} \\[1em] = \dfrac{110 \times 10 \times 1}{100} \\[1em] = \dfrac{1100}{100} \\[1em] = 11.

Amount = P + I = ₹ 110 + ₹ 11 = ₹ 121.

C.I. = Final amount - Initial principal = ₹ 121 - ₹ 100 = ₹ 21.

Difference between C.I. and S.I. = ₹ 21 - ₹ 20 = ₹ 1.

Hence, option 1 is the correct option.

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