Discuss Forum

1. What is the difference between the amount of interest eamed on a principal of Tk. 100 for 2 years at 10% simple interest rate and 10% compounding interest rate?

  • A. Tk. 121
  • B. Tk. 121
  • C. Tk. 121
  • D. Tk. 121

Answer: Option D

Explanation:

Here,

P= 100; n= 2years; r= 10%

Shortcut: Difference between the two interest:

Pr^2 = 100×(10/100)^2 = 1

Ans: 1 

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