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 ₱112,000 at 12% for 2 years?
- ₱1,612.80
- ₱13,440
- ₱3,225.60
- ₱26,880
Answer
A. ₱1,612.80
Solution
CI − SI for 2 years = P(r)² = ₱112,000 × (0.12)² = ₱1,612.80.
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