A sum of ₹5,000 was deposited for 3 years at 10% per annum, compounded annually. The difference between the interest for 2 years and that for 3 years is:
Explanation:
Interest for 2 years = 5,0001+101002 - 5000 = 6050 - 5000 = Rs. 1,050
Interest for 3 years = 5,0001+101003 - 5000 = 6655 - 5000 = Rs. 1,655
Difference in interest for 3 years and 2 years = 1655 - 1050 = Rs. 605
Hence, option (b).
» Your doubt will be displayed only after approval.