The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

1Rs. 2.50
2Rs. 3
3Rs. 3.75
4Rs. 4

Answer:- 1

Explanation:-

Solution:

\begin{aligned} S .I . = R s . (\frac{1200 \times 10 \times 1}{100}) \\ = R s . 120 \\ C .I . = R s . [1200 \times {(1 + \frac{5}{100})}^{2} - 1200] \\ = R s . 123 \\ ∴ Difference = R s . (123 - 120) \\ = R s . 3 \end{aligned}

$\eqalign{ & {\text{S}}{\text{.I}}{\text{.}}\, = Rs.\,\left( {\frac{{1200 \times 10 \times 1}}{{100}}} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,120 \cr & {\text{C}}{\text{.I}}{\text{.}} = Rs.\,\left[ {1200 \times {{\left( {1 + \frac{5}{{100}}} \right)}^2} - 1200} \right] \cr & \,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,123 \cr & \therefore {\text{Difference}} = Rs.\,\left( {123 - 120} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,3 \cr}$