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Mathematics

On ₹ 6000, the difference between C.I. and S.I. in 2 years and at 10% compound interest, compounded per year, is :

  1. ₹ 120

  2. ₹ 600

  3. ₹ 60

  4. ₹ 180

Compound Interest

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Answer

For S.I. :

Principal = ₹ 6000

Rate = 10%

Time = 2 years

S.I. = 6000×10×2100\dfrac{6000 \times 10 \times 2}{100} = ₹ 1200.

For C.I. :

C.I. = A - P

=P(1+r100)nP=6000×(1+10100)26000=6000×(110100)26000=6000×(1110)26000=6000×1211006000=72606000=1260.= P\Big(1 + \dfrac{r}{100}\Big)^n - P \\[1em] = 6000 \times \Big(1 + \dfrac{10}{100}\Big)^2 - 6000 \\[1em] = 6000 \times \Big(\dfrac{110}{100}\Big)^2 - 6000 \\[1em] = 6000 \times \Big(\dfrac{11}{10}\Big)^2 - 6000 \\[1em] = 6000 \times \dfrac{121}{100} - 6000 \\[1em] = 7260 - 6000 \\[1em] = ₹ 1260.

Difference between C.I. and S.I. = ₹ 1260 - ₹ 1200 = ₹ 60.

Hence, Option 3 is the correct option.

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