Sehar gave Shazia Rs.1250 on compound interest for 2 years at 4% per annum. How much loss would Sehar has suffered had she given it to Shazia for 2 years at 4% per annum simple interest?
Q1. Sehar gave Shazia Rs.1250 on compound interest for 2 years at 4% per annum. How much loss would Sehar has suffered had she given it to Shazia for 2 years at 4% per annum simple interest?
Answer: Rs0.20
Explanation: CI = 1250×(1.04)² − 1250 = Rs.102; SI = 1250×0.04×2 = Rs.100; loss = Rs.2.