Madhya Pradesh Police Exam Model Paper 6

Given: The principal is 625 rupee Rate is 8% Concept: $SI = \frac{P \times R \times T}{10}$ 0 $CI = P\left[\left(1 + \frac{r}{100}\right)n - 1\right]$ Here, n is the number of terms in the year. Calculation: The simple interest for 2 years $\Rightarrow \frac{625 \times 8 \times 2}{100}$ $\Rightarrow 25 \times 2 \times 2$ ⇒ 100 rupee Now, Compound interest for 2 years is $\Rightarrow 625\left[\left(1 + \frac{8}{100}\right)^2 - 1\right]$ $\Rightarrow 625\left[\left(\frac{108}{100}\right)^2 - 1\right]$ $\Rightarrow 625\left[(108)^2 - (100)^2\right] \times \frac{1}{10000}$ $\Rightarrow \frac{208 \times 8}{16}$ ⇒ 104 rupee Now, The difference between CI and SI is $\Rightarrow 104 - 100$ ⇒ 4 ∴ The difference between CI and SI is 4. The difference between CI and SI for 2 years is $P\left(\frac{r}{100}\right)^2$ The difference is $\Rightarrow 625\left(\frac{8}{100}\right)^2$ $\Rightarrow 625 \times \frac{4}{625}$ ⇒ 4 ∴ The difference between CI and SI is 4. This short trick works only for 2 years.