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?

Answer: Option B

Solution

Answer: Option B

Solution:

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