Quantitative Aptitude • Simple & Compound InterestMedium
What is the difference between the compound interest and the simple interest on ₹900 for 2 years at 10% per year?
A. ₹180
B. ₹90
C. ₹9✓ Correct Answer
D. ₹18
💡 Solution & Explanation
For 2 years, compound interest is more than simple interest only because of the interest on the first year's interest. That extra = principal × (rate/100)² = 900 × (10/100)² = ₹9. You can check by working out both: simple interest is ₹180 and compound interest is ₹189.
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