On a certain sum of money, the simple interest for 2 years is Rs 350 at the rate of 4% per annum. If it was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
A. Rs. 3.50
B. Rs. 7
C. Rs. 14
D. Rs. 35
Answer: Option B
Solution(By Examveda Team)
Simple Interest (I) = $$\frac{{PTR}}{{100}}$$350 = $$\frac{{P \times 2 \times 4}}{{100}}$$
P = 4375
C.I = 175 + 175 + 7 = 357
Difference = 357 - 350 = Rs. 7
This Question Belongs to Arithmetic Ability >> Compound Interest
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