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Simple & Compound Interest · Question 50 of 60

Question 50

EasyOriginal question

Anjali puts ₹30,000 in a deposit paying 10% per annum compound interest (compounded annually), and Rahul puts ₹30,000 in one paying 10% per annum simple interest. After 2 years, how much more interest has Anjali earned?

Options for question 50

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Extra interest = P(R100)2=30000×1100P\left(\frac{R}{100}\right)^2 = 30000 \times \frac{1}{100}.

  2. Anjali earns ₹300 more.

Worth noting

The extra ₹300 is 10% of the first year's ₹3,000 interest, earned in the second year. ₹6,300 is Anjali's total interest, not the difference.

Concept
CI − SI for 2 years as interest on interest
Typical time
40 s
Your time
—
The rule this testsDifference between SI and CI
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