The difference between simple interest and compound interest on ₹5,000 for 2 years at a rate of 5% per annum is:

A

₹6.25
B

₹12.50
C

₹25
D

₹50

Explanation:

The difference is ₹12.50 due to the compound effect over 2 years

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This question belongs to the set "Mathematics Practice Quiz on Simple and Compound Interest". Click below to read detailed notes and attempt the full quiz.

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