{"id":90149,"date":"2025-06-01T10:21:48","date_gmt":"2025-06-01T10:21:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90149"},"modified":"2025-06-01T10:21:48","modified_gmt":"2025-06-01T10:21:48","slug":"the-difference-between-the-compound-interest-and-the-simple-interest-f","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/","title":{"rendered":"The difference between the compound interest and the simple interest f"},"content":{"rendered":"<p>The difference between the compound interest and the simple interest for 2 years on a sum of money is Rs. 60. If the simple interest for 2 years is Rs. 1440, what is the rate of interest ?<\/p>\n<p>[amp_mcq option1=&#8221;$4\\frac{1}{6}$ %&#8221; option2=&#8221;$6\\frac{1}{4}$ %&#8221; option3=&#8221;8%&#8221; option4=&#8221;$8\\frac{1}{3}$ %&#8221; correct=&#8221;option4&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CAPF &#8211; 2017<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-capf-2017.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-capf-2017\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe rate of interest is $8\\frac{1}{3}$ %.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nLet the principal be P and the rate of interest be R% per annum.<br \/>\nSimple Interest (SI) for 2 years = Rs. 1440.<br \/>\nSI for 1 year = 1440 \/ 2 = Rs. 720.<br \/>\nWe know that SI for 1 year = (P * R * 1) \/ 100. So, PR\/100 = 720.<br \/>\nThe difference between Compound Interest (CI) and Simple Interest (SI) for 2 years is the interest earned on the first year&#8217;s simple interest.<br \/>\nDifference (CI &#8211; SI) for 2 years = Interest on SI of 1st year.<br \/>\nGiven difference = Rs. 60.<br \/>\nInterest on SI of 1st year = (SI for 1st year * R * 1) \/ 100.<br \/>\nSo, 60 = (720 * R) \/ 100.<br \/>\n6000 = 720 * R.<br \/>\nR = 6000 \/ 720 = 600 \/ 72 = 100 \/ 12 = 25 \/ 3.<br \/>\n25\/3 % = $8\\frac{1}{3}$ %.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe formula for the difference between CI and SI for 2 years is P * (R\/100)^2. We could also solve this using this formula if P was known or easily derivable. Since SI for 2 years is 1440, P * R * 2 \/ 100 = 1440, so PR\/100 = 720. Substitute this into the difference formula: Difference = (PR\/100) * (R\/100) = 720 * (R\/100).<br \/>\nGiven difference = 60. So, 60 = 720 * (R\/100).<br \/>\nR\/100 = 60\/720 = 1\/12.<br \/>\nR = 100\/12 = 25\/3 = $8\\frac{1}{3}$ %. Both methods yield the same result.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The difference between the compound interest and the simple interest for 2 years on a sum of money is Rs. 60. If the simple interest for 2 years is Rs. 1440, what is the rate of interest ? [amp_mcq option1=&#8221;$4\\frac{1}{6}$ %&#8221; option2=&#8221;$6\\frac{1}{4}$ %&#8221; option3=&#8221;8%&#8221; option4=&#8221;$8\\frac{1}{3}$ %&#8221; correct=&#8221;option4&#8243;] This question was previously asked in UPSC CAPF &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"The difference between the compound interest and the simple interest f\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/#more-90149\">Detailed Solution<span class=\"screen-reader-text\">The difference between the compound interest and the simple interest f<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1101,1102],"class_list":["post-90149","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1101","tag-quantitative-aptitude-and-reasoning","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The difference between the compound interest and the simple interest f<\/title>\n<meta name=\"description\" content=\"The rate of interest is $8frac{1}{3}$ %. Let the principal be P and the rate of interest be R% per annum. Simple Interest (SI) for 2 years = Rs. 1440. SI for 1 year = 1440 \/ 2 = Rs. 720. We know that SI for 1 year = (P * R * 1) \/ 100. So, PR\/100 = 720. The difference between Compound Interest (CI) and Simple Interest (SI) for 2 years is the interest earned on the first year&#039;s simple interest. Difference (CI - SI) for 2 years = Interest on SI of 1st year. Given difference = Rs. 60. Interest on SI of 1st year = (SI for 1st year * R * 1) \/ 100. So, 60 = (720 * R) \/ 100. 6000 = 720 * R. R = 6000 \/ 720 = 600 \/ 72 = 100 \/ 12 = 25 \/ 3. 25\/3 % = $8frac{1}{3}$ %.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The difference between the compound interest and the simple interest f\" \/>\n<meta property=\"og:description\" content=\"The rate of interest is $8frac{1}{3}$ %. Let the principal be P and the rate of interest be R% per annum. Simple Interest (SI) for 2 years = Rs. 1440. SI for 1 year = 1440 \/ 2 = Rs. 720. We know that SI for 1 year = (P * R * 1) \/ 100. So, PR\/100 = 720. The difference between Compound Interest (CI) and Simple Interest (SI) for 2 years is the interest earned on the first year&#039;s simple interest. Difference (CI - SI) for 2 years = Interest on SI of 1st year. Given difference = Rs. 60. Interest on SI of 1st year = (SI for 1st year * R * 1) \/ 100. So, 60 = (720 * R) \/ 100. 6000 = 720 * R. R = 6000 \/ 720 = 600 \/ 72 = 100 \/ 12 = 25 \/ 3. 25\/3 % = $8frac{1}{3}$ %.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:21:48+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The difference between the compound interest and the simple interest f","description":"The rate of interest is $8frac{1}{3}$ %. Let the principal be P and the rate of interest be R% per annum. Simple Interest (SI) for 2 years = Rs. 1440. SI for 1 year = 1440 \/ 2 = Rs. 720. We know that SI for 1 year = (P * R * 1) \/ 100. So, PR\/100 = 720. The difference between Compound Interest (CI) and Simple Interest (SI) for 2 years is the interest earned on the first year's simple interest. Difference (CI - SI) for 2 years = Interest on SI of 1st year. Given difference = Rs. 60. Interest on SI of 1st year = (SI for 1st year * R * 1) \/ 100. So, 60 = (720 * R) \/ 100. 6000 = 720 * R. R = 6000 \/ 720 = 600 \/ 72 = 100 \/ 12 = 25 \/ 3. 25\/3 % = $8frac{1}{3}$ %.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/","og_locale":"en_US","og_type":"article","og_title":"The difference between the compound interest and the simple interest f","og_description":"The rate of interest is $8frac{1}{3}$ %. Let the principal be P and the rate of interest be R% per annum. Simple Interest (SI) for 2 years = Rs. 1440. SI for 1 year = 1440 \/ 2 = Rs. 720. We know that SI for 1 year = (P * R * 1) \/ 100. So, PR\/100 = 720. The difference between Compound Interest (CI) and Simple Interest (SI) for 2 years is the interest earned on the first year's simple interest. Difference (CI - SI) for 2 years = Interest on SI of 1st year. Given difference = Rs. 60. Interest on SI of 1st year = (SI for 1st year * R * 1) \/ 100. So, 60 = (720 * R) \/ 100. 6000 = 720 * R. R = 6000 \/ 720 = 600 \/ 72 = 100 \/ 12 = 25 \/ 3. 25\/3 % = $8frac{1}{3}$ %.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:21:48+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/","name":"The difference between the compound interest and the simple interest f","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:21:48+00:00","dateModified":"2025-06-01T10:21:48+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The rate of interest is $8\\frac{1}{3}$ %. Let the principal be P and the rate of interest be R% per annum. Simple Interest (SI) for 2 years = Rs. 1440. SI for 1 year = 1440 \/ 2 = Rs. 720. We know that SI for 1 year = (P * R * 1) \/ 100. So, PR\/100 = 720. The difference between Compound Interest (CI) and Simple Interest (SI) for 2 years is the interest earned on the first year's simple interest. Difference (CI - SI) for 2 years = Interest on SI of 1st year. Given difference = Rs. 60. Interest on SI of 1st year = (SI for 1st year * R * 1) \/ 100. So, 60 = (720 * R) \/ 100. 6000 = 720 * R. R = 6000 \/ 720 = 600 \/ 72 = 100 \/ 12 = 25 \/ 3. 25\/3 % = $8\\frac{1}{3}$ %.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-between-the-compound-interest-and-the-simple-interest-f\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"The difference between the compound interest and the simple interest f"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/90149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=90149"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/90149\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=90149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=90149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=90149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}