What is the difference (in Rs.) between the simple interest and the compound interest on a sum of Rs. 8000 for  years at the rate of 10% p.a. when the interest is compounded yearly?

This question was previously asked in
SSC CGL 2020 Tier-I Official Paper 10 (Held On : 18 Aug 2021 Shift 1)
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  1. 152.80
  2. 150
  3. 155
  4. 147.20

Answer (Detailed Solution Below)

Option 4 : 147.20
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PYST 1: SSC CGL - English (Held On : 11 April 2022 Shift 1)
25 Qs. 50 Marks 12 Mins

Detailed Solution

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Given:

Principal = Rs. 8000

Rate = 10%

Time =   years

Formula used:

SI = (P × t × r)/100

CI = P(1 + r/100)t - P

P = Principal

t = time

r = rate

Calculation:

SI = (8000 × 12 × 10)/(100 × 5)

⇒ Rs. 1920

CI = 8000[1 + 10/100]2 × [1 + 4/100] - 8000

⇒ 8000 × 11/10 × 11/10 × 26/25 - 8000

⇒ 10067.2 - 8000

⇒ 2067.2

Difference = 2067.2 - 1920 = 147.2

∴ Required difference is Rs. 147.2

Shortcut Trick 

So, the difference of CI and SI = 80 + 32 + 32 + 3.2

∴ The Difference of CI and SI = 147.2.

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