Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
What is the difference between the compound interest (compounded annually) and the simple interest on ₱68,000 at 5% for 2 years?
- ₱3,400
- ₱170
- ₱340
- ₱6,800
Answer
B. ₱170
Solution
CI − SI for 2 years = P(r)² = ₱68,000 × (0.05)² = ₱170.
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